Kwara Lauds BUA’s $300m Investment in Lafiaji Sugar Estate Hammed Shittu in Ilorin Kwara State Government has commended BUA Group for its $300 million investment in sugar production in Lafiagi, Kwara State, stating that this was a step in the right direction to end the importation of sugar in the country. The governor, Mr. Abdulfatah Ahmed, explained
T H I S D AY S P E C I A L R E L E A S E that Nigeria continues to be a large sugar consumer, maintaining that the high consumption rate was largely attributed to the nation’s growing population as well
as the growth in the food processing sector for which sugar is a major ingredient. He also called on other local and foreign investors to invest in the country’s sugar industry
to end the importation of the commodity, saying that Nigeria has the capacity to meet its local demand for sugar. He said based on the data made available by the United States Department of Agriculture (USDA), Nigeria’s
raw sugar imports in 2015 was estimated at about 1.345 million tonnes per annum (mtpa) and is expected to rise to about 1.7mtpa. “This is because of the absence of competitive alternatives to meet the
PDP Crisis Worsens as Courts Grant Conflicting Orders ... Page 11
demand for local consumption. “It is rather worrisome, considering the fact that Nigeria is endowed with the manpower, raw materials and an excellent climate to produce enough sugar to meet local demand and of course export,” he added. He said it had become Continued on page 8
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At Last, Central Bank to Introduce Flexible Exchange Rate Regime Warns economy faces imminent recession, no quick fix to forex scarcity Leaves interest rate unchanged at 12% Blames economic woes on delayed passage of budget Analysts caution against inherent abuses in forex window for ‘critical transactions’ James Emejo in Abuja and Obinna Chima in Lagos After months of resisting calls for the adoption of a flexible foreign exchange regime, the Central Bank of Nigeria (CBN) yesterday finally bowed to pressure, stating that it would
introduce greater flexibility in the interbank foreign exchange market structure and retain a small window for critical transactions for prospective investors. It equally warned that the Continued on page 8
Senate Asks FG to Recover N42bn Waivers Granted Dangote, BUA, Others
Asks Stallion, Olam, Milan to refund N24bn House: FG loses $2.9bn annually to tax waivers
Omololu Ogunmade and Damilola Oyedele in Abuja
The Senate yesterday asked the federal government to recover N42 billion grants as import duty waivers to six companies including Dangote Limited and BUA Sugar Refinery between 2013 and 2015.
The upper chamber also asked the federal government to compel Olam International Limited, Popular Foods, a subsidiary of Stallion Group, and Milan Group to pay the import duty demand notice of N24 billion served on Continued on page 8
EFCC Declares Omisore Wanted over A ROYAL VISIT Vice-President Atiku Abubakar (left) and the Ooni of Ife, Oba Adeyeye Enitan Ogunwusi, when the Ooni paid Atiku a N700m Payment from ONSA … Page 11 Former visit at his residence in Asokoro, Abuja… yesterday
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WEDNESDAY, MAY 25, 2016 • T H I S D AY
PAGE EIGHT KWARA LAUDS BUA’S $300M INVESTMENT IN LAFIAJI SUGAR ESTATE necessary to change the narrative on sugar production, “not to only save us from wasting our scarce foreign exchange but also to generate wealth and enhance economic growth”. “We have identified agriculture as a major strategy to create wealth and jobs for the youths which we believe will be felt in the medium to long-term. “We are putting the required policies and structures in place for agro-led economic diversification,” Ahmed said. The governor, during the inauguration of BUA Group’s sugar nursery plantation in
Lafiagi, said the sugar subsector is important due to its ability to contribute largely to solving unemployment, development of other subsidiary industries, and its significant impact on the rural economy. “I am pleased to be here to inaugurate the 2016 cane planting season which represents another positive step in the nation’s resolve to end the importation of sugar in the country and also expand the base of the state’s economy,” he said. He commended the management of BUA Group for its recent investment in Lafiagi Sugar Company which
will produce about 1.5 mtpa and is expected to employ about 6,000 people directly and another 19,000 indirectly. “This investment will significantly reduce youth unemployment in this area and bring more prosperity to the state. “Let me use this opportunity to assure the management of BUA of our maximum cooperation at all times. We pledge to continue to provide a conducive environment to support local and foreign investments in the state," he said. The Executive Director, BUA Group, Mr. Kabiru Rabiu, said BUA was making a
total investment of over $300 million in the sugar company estate that would include a sugar mill, refinery, an ethanol and power plant, and would include the agriculture aspects of the project. He added that the plant would produce over 140,000 tonnes of pure refined white sugar, 25 million litres of ethanol and generate over 35 megawatts of electricity using bagasse as feedstock. Bagasse is the dry, fibrous residue left after the extraction of juice from the crushed stalks of sugarcane. “Our planned 500-hectare nursery development is unprecedented in the history
of the Nigerian sugar industry. With the achievement of this important milestone, we intend to break yet another record by replanting over 3,000 hectares of land next year,” Rabiu said. He added that the company would establish a fully integrated sugar mill with the accompanying refinery that would have the capacity to crush about 7,000 tonnes of cane per day. According to him, the excess power generated by the company would help in reducing the acute shortage of electricity in the state and would be sold to the electricity distribution
companies to add to the grid. “Our quest for the industry leadership in the Nigerian sugar space is evidenced by not only our investment in the sector but also by our efficiency. “BUA Sugar Refinery Limited in Lagos scored the highest capacity utilisation among the three refineries in the country in the last two years," he said. He added that the company’s desire and commitment to ensure local sugar production in Nigeria also led to the acquisition of 50,000 hectares of land in Bassa, Kogi State for its second sugar plantation.
injection approved by the federal government may not impact the economy soon, as the processes involved in MDAs finalising procurement contracts before the disbursement of funds may further delay the much needed financial stimulus to restart growth.” Asked to comment on the way forward for the economy, he said: “I think basically, this has to do with the fact that the authorities certainly know what to do, but I think what is important is that one aspect that is largely contributory to the situation we find ourselves today is the delay in the passage of the budget. “The delay in the passage of the budget has created a few distortions in the system. You can imagine a situation where a budget is passed in May, a budget that should have been passed in January or latest, February. “And the Minister of Budget and National Planning has himself commented that this would be the last time that would happen. “Basically, the important thing is to note that a lot of
activities are predicated on the passage of the budget; when the money in the budget is available to be spent either for capital projects, construction workers can get back to work, roads can begin to be reconstructed again; people will buy gravel, sand, cement; labourers would earn money and it would engender consumer purchases. “What you find is that consumer purchases plus other expenditure constitute close to 85 per cent of the GDP computation. I think all of us must have learnt from this bad experience. And I am hoping that going forward, we would work together to ensure that we are well coordinated to this objective.” The governor further claimed that Nigerians are currently buying forex at a higher rate than the official price. He said: “That is untrue. The central bank still sells forex at N197 to the dollar but unfortunately, the situation is that people are not able to get the quantum of dollars
recalled, was originally designed to attract genuine investments, particularly foreign investors who were expected to bring in capital to support economic development and create employment. The policy has however been abused, the House said. The House therefore directed its Committees on Finance and Public Accounts to review the policy, which is implemented by the Ministry of Finance, with a view to abolishing unproductive incentives. The resolution of the House followed a motion sponsored by Hon. Kehinde Odeneye (Ogun APC), who emphasised that conditions for tax incentives should be clearly spelt out and directed at achieving specific social and economic objectives. Nigeria receives an average of $6 billion annually, Odeneye said, citing figures from the Nigeria Investment Promotion Council (NIPC). Hon. Herman Hembe (Benue APC) also lamented that the policy was abused to the extent that waivers were granted to oil exploration companies. He accused the Ministry of Finance of disregarding the recommendations on eligibility and duration of tax waivers.
Hon. Nnenna Ukeje (Abia PDP) however noted that the issue of tax waivers could not be handled by a motion but by a bill, which has the potential of becoming a law. The majority leader, Hon. Femi Gbajabiamila, advocated that the investigation should include waivers granted to manufacturers and importers, not just foreign investors. “In Nigeria, tax waivers are the rule rather than the exception,” Gbajabiamila said. The joint committee is expected to submit its report in four weeks.
AT LAST, CENTRAL BANK TO INTRODUCE FLEXIBLE EXCHANGE RATE REGIME Nigerian economy might further contract in the second quarter (Q2) of this year into a full blown recession, as some of the conditions which led to the contraction in the gross domestic product (GDP) growth rate in the first quarter remained largely unresolved. The Nigerian economy contracted by -4 per cent in the first quarter of 2016, signalling the deteriorating economic conditions in the country and its first economic contraction in 25 years. The central bank added that the weak outlook for growth, which was signalled in July 2015 when it warned of the risk of a recession, could extend to the second quarter of 2016. It blamed the delayed passage of the 2016 budget for constraining the muchdesired fiscal stimulus, which edged the economy towards contractionary output. Also yesterday, while citing limited options in an already tight fiscal environment and the need to allow previous monetary policy decisions to crystalise, the CBN resolved to leave the monetary policy rate (MPR), otherwise
known as the interest rate, unchanged at 12 per cent with the asymmetric corridor at +200 and -500 basis points around the MPR. Addressing journalists in Abuja at the end of the twoday meeting of the Monetary Policy Committee (MPC), the CBN Governor, Mr. Godwin Emefiele, said the central bank resolved to introduce greater flexibility in the interbank foreign exchange market structure and to retain a small window for critical transactions for prospective investors. Emefiele’s statement aligned with President Muhammadu Buhari’s speech during his budget presentation before the National Assembly on December 22, 2015, that the central bank would consider the adoption of a more flexible foreign exchange regime. Despite his statement, Buhari remained vehemently opposed to the devaluation of the naira and supported the currency controls introduced by the CBN, which are now partly to blame for the contraction in the economy. Emefiele said in arriving
at MPC's decisions, the nine members of the committee, who attended the meeting, assessed the relevant risk profiles and came to the conclusion that although the balance of risks remained tilted against growth, previous decisions needed time to crystallise. He said: “Consequently, in a period of stagflation, the policy options are very limited. To avoid complicating the conditions, the committee decided on the least risky option to hold. “With the foreign exchange market framework now ready, the MPC voted unanimously to adopt greater flexibility in the exchange rate policy to restore the automatic adjustment properties of the exchange rate. “Consequently, all nine members voted to hold and introduce greater flexibility in managing the foreign exchange rate. The bank would however retain a small window for funding critical transactions. “Details of operation of the market would be released by the bank at an appropriate time.”
Emefiele stated that the committee had in July 2015, warned about the possibility of the economy falling into recession unless appropriate complementary measures were taken by the monetary and fiscal authorities. He said: “Unfortunately, the delayed passage of the 2016 budget constrained the much desired fiscal stimulus, thus edging the economy towards contractionary output. As a stopgap measure, the central bank continued to deploy all the instruments within its control in the hope of keeping the economy afloat. “The actions however proved insufficient to fully avert the impending economic contraction. With some of the conditions that led to the contraction in Q1, 2016 still largely unresolved, the weak outlook for growth which was signalled in July 2015 could extend to Q2. “To this effect, today’s policy actions have to be predicated on a less optimistic outlook for the economy in the short term, given that even after the delayed budgetary passage in May 2016, the initial monetary
Continued on page 10
SENATE ASKS FG TO RECOVER N42BN WAIVERS GRANTED DANGOTE, BUA, OTHERS them by the Nigeria Customs Service (NCS) for exceeding the quota granted to them on rice importation during the period. The Senate resolution was the fallout of the adoption of the report of its ad hoc Committee on Import Duty Waivers, Concessions and Grants which investigated the indiscriminate use and abuse of waivers granted by the federal government to some organisations. Presenting the report, the committee’s chairman, Senator Adamu Aliero, put the total amount to be recovered as grants for rice importation at N10 billion. He listed the organisations meant to repay the N10 billion rice waivers and the respective amounts they should refund to include: Dangote Limited (N1,031,038,848); Kersuk Farms (N1,927,800,000); BUA Group (N3,704,126,328); Elephant Group (N1,501,627,680); Golden Penny (N284,602,399.20); and Milan Group (N1,855,263,312). He added that the sum of N31.7 billion, representing 5 per cent import duty and another 45 per cent levy for 2013, as well as 5 per cent import duty and 65 per cent levy for 2014-2015 grants for the importation of raw sugar,
should be recovered from BUA Group for obtaining a waiver for the importation of raw sugar without what he described as the backward integration policy for local sugar production. He also said Mediterranean Nigeria Limited should be made to pay N82,101,866.10 as import duty for excess and under-invoicing 2,161,440 kilogramme of St. Louis cube sugar in June 2014. In the same vein, the Senate resolved that the sum of N687,496,320, which the committee described as an illegal amount for the transfer of 100,000 metric tonnes of rice by JNI to Elephant Group, should be recovered. It also said Elephant Group and officials, who were involved in the transaction, should be sanctioned for alleged economic sabotage, noting that the waiver was offered as charity grants and not for commercial purpose, because the company only donated foodstuffs to secure the offer. The Senate also resolved that firms, which were illegally granted customs duty waivers and concessions through flagrant abuse of executive powers, must be made to refund such losses, as it described the amount as a huge loss of revenue to the federation account.
It also said the companies should be sanctioned for economic sabotage. According to the committee, organisations such as Mc Sally Investment Limited, which it said was not a player in the sector, got a waiver and imported 250,000 metric tonnes of vegetable oil, adding that it was detrimental to the economy. In the same vein, the Senate said Elephant Group should be sanctioned for securing a waiver and importing 100,000 metric tonnes of parboiled rice without being a rice farmer or miller as provided for in the National Rice Policy. The Senate called on the federal government to ensure that the grant of multiple incentives in the form of multiple duty waivers, concessions, pioneer incentives and grants at the same time to the same beneficiaries should be stopped henceforth. It also asked the NCS to accept only bank indemnities and not corporate indemnities to avoid future loss of revenue to the government. It advised the federal government to as a matter of urgency restructure and streamline the functions and responsibilities of the Budget Office of the Federation with
a view to preventing abuses and excesses in support of duty waivers, concessions and grants. It also said in line with international best practices, the federal government should take appropriate steps to evolve a clear-cut policy on import duty waivers, concessions and transparent grants. The Senate further held that federal and state governments' contractors should no longer enjoy import duty waivers, just as it said institutional weakness in the system should be addressed through the review of all relevant laws such as Customs and Excise Management Act and Nigeria Export Promotion Council Act, among others.
$2.9bn Lost Annually to Tax Waivers Just as the Senate ad hoc committee presented its report, the House of Representatives yesterday also disclosed that Nigeria currently loses about $2.9 billion annually to indiscriminate tax waivers, with little evidence that the tax incentives have increased investments in the country. The policy of tax incentives and waivers, the House
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NEWS
Buhari’s Lagos No-show Dismays Nigerian Business At least the taxi drivers in Lagos are happy, even if businessmen in Nigeria’s commercial capital are not. A year after becoming president, Muhammadu Buhari pulled out of his first official visit to Lagos on Monday, averting citywide gridlock but angering business leaders who said the 73-year-old former military ruler is deaf to their plight. With Africa’s largest economy now contracting, the foreign exchange market frozen by red tape and a new Niger Delta insurgency sending crude oil output to a 20-year low, it is a plight that gets worse by the day. Yet businessmen say Buhari, who swept to power in an election a year ago, remains oblivious and continues to sacrifice short-term growth in pursuit of his long-term dream of overhauling the way Africa’s most populous nation works. To many, sending VicePresident Yemi Osinbajo, a Lagos commercial lawyer, to the meeting in his place despite thousands of posters
welcoming “the People's President to No. 1 Africa’s mega city” - was another sign of his disdain. “It is rather unfortunate that the federal government would raise the expectations of the people... only to cancel the presidential visit, seemingly with no obvious cogent reasons being given,” said Yemi Adeleke, director of World Trade Centre, a trade and investment agency. Buhari’s spokesman Garba Shehu said the president, who is based in the capital, Abuja, was forced to postpone his visit after being “faced with scheduling difficulties”. Buhari will visit the port city after the Muslim fasting month of Ramadan which ends at the start of July, he added. Foremost among private sector complaints are foreign exchange curbs initially introduced to protect currency reserves hammered by the decline in the price of crude oil, but which are now a pillar of Buhari’s vision of a transformed economy. In order to keep the naira at 197 to the dollar, the central
Buhari bank has scuppered the interbank foreign exchange market, blocking access to dollars for anybody not armed with a valid overseas invoice. Buhari has argued that this is about ending speculation, as well as a decades-long cycle of devaluations that has hit ordinary Nigerians in the form of high inflation and discouraged the investment needed to build a serious domestic factory sector. “It is extraordinarily frustrating for those of us in the business community
who supported him that he has chosen to be intransigent about something it seems as if he doesn’t really understand,” said Timi Soleye, president of CRYO Gas and Power. Critics, including the International Monetary Fund, point to a currency trading at almost half its official value on the black market, fuelling expectations of a devaluation that are now so widespread that investment has dried up. This view received support on Friday, when the National Bureau of Statistics revealed the economy shrank 0.4 per cent in the first quarter, with industry and manufacturing shrinking 5.5 per cent and 7 per cent respectively. “It is now clear that the adverse effects of the oil price shock have filtered through to the demand side of the economy, and we maintain our view that Abuja’s current policy framework only serves to exacerbate the oil shock,” Cape Town-based NKC African Economists said. “The economy might still find itself on a slightly firmer footing towards year-end, but
this will largely depend on Abuja abandoning some of its unconventional economic policies.” Vice-President Osinbajo hinted at changes when he called this month for a “substantial” review of foreign exchange policy, but there are few signs of this filtering down to the Central Bank of Nigeria, which announces its latest monetary policy decision Tuesday. Over the last year, Governor Godwin Emefiele’s speeches have chimed closely with Buhari’s views on the economy and currency, and this month the bank explicitly denied an online media report of an imminent devaluation to 290 to the dollar. One-month deliverable forwards - essentially a view on the currency one month out - hit 245 to the dollar on May 16 after the devaluation report, but have retraced to 224 this week, reflecting a more sober analysis of the chances of a weaker naira. All but one of 12 analysts polled by Reuters this month said the currency would be
devalued, with a median expectation of a 15 per cent weakening - although many were reluctant to be pinned down on the timing. Analysts also say Buhari’s actions now closely mirror his behaviour as a military ruler in the early 1980s. Besides sending in soldiers with bullwhips to bring order to chaotic queues at bus-stops, he tried to stimulate domestic manufacturing by banning imports and rebuffed IMF pressure to devalue the currency. Still locked in a military mindset - he came to power in a coup and left via the same route - diplomats say he is unlikely to respond in a conventional manner to public or political criticism. “Buhari doesn’t do politics. He does command and control,” said one Abuja-based diplomat. “And so far it’s working.”
recipe for abuse and it should be discouraged immediately. “Everybody should go to the autonomous market. The market structure has to be supported by market dynamics,” he said. Also, the Head of Research at Afrinvest West Africa Limited, Mr. Ayodeji Ebo, said the decision by the MPC would excite the market, adding that it was a big shift from the past stance of a fixed forex regime. “With the MPC attempting to adopt a flexible exchange rate regime, this would excite the market. I expect the equities market to sustain its positive form which was in anticipation of this flexible regime and fixed income investors would come back to the market,” Ebo predicted. The Head, Research at Cowry Asset Management Limited, Edgar Ebinum, said that the current inflationary pressure would continue unrestrained as budgetary disbursement commences. He also predicted that interest rate would continue to hover at current levels, with increased double digit outlook. “We also expect the naira to remain under pressure as market forces adjust to the fixed CBN clearing rate to a more realistic parallel market rate. Also, likely foreign exchange inflows from domiciliary accounts estimated at $20 billion as currency exchange risk minimises. “Capital market activities are expected to witness gradual recovery as foreign exchange risk diminishes with the adoption of a more flexible exchange rate regime,” he added. The Lagos Chamber of Commerce and Industry (LCCI) also commended the decision of the CBN to adopt a flexible exchange rate regime. The chamber said it believed the policy choice would help improve efficiency in foreign exchange allocation in the economy.
Director General, LCCI, Mr. Muda Yusuf, added that it would help address the distortions that currently characterise the forex market and bring the economy closer to equilibrium. Furthermore, he said it would help to improve liquidity in the forex market; lead to a reduction in the current trade arrears; and reduction in the arrears for forex requests that have accumulated in the past 18 months. “We also welcome the decision of the CBN to refrain from further tightening at this time. The current context is that the economy is contracting, unemployment is on the rise, manufacturing capacity utilisation has been weakening, and investor confidence has been at its lowest ebb. The decision not to tighten monetary policy is therefore appropriate,” he said. However, Yusuf proposed that in moving towards a flexible forex regime, the CBN should adopt a transparent policy, which guarantees a level playing field for all participants. He also pointed out on the need for clarity on what the CBN described as a special window for critical transactions for which preferential rates would apply. “We would like to caution against possible abuse and distortions that such a window could create. It could pose a risk to the entire system. We would like to be assured that the window for the critical transactions will be managed transparently and in a manner that it will not create distortions in the economy. “CBN should revisit the list of items that have been placed on the exclusion list of the forex market. Many critical inputs of manufacturing companies are on the list and this has crippled the operations of such companies creating significant job and output losses,” he said.
•This report from Reuters was published before the CBN announced on Tuesday it will introduce a flexible foreign exchange rate regime
AT LAST, CENTRAL BANK TO INTRODUCE FLEXIBLE EXCHANGE RATE REGIME they need and I imagine that people can understand that this is because of what the central bank has in its kitty as the supply of foreign exchange is too inadequate to meet demand. “So what we do is to provide what we have available and expect that those who require foreign exchange will resort to other sources.” He further foreclosed expectations that the new policy on forex flexibility would translate to the resumption of dollar sales to bureau de change (BDC) operators. “The flexibility we are talking about will be worked out and details will be provided in the coming days but of course, BDCs are part of the foreign exchange market. “But I am not by any means saying that we are going to restore BDCs as in providing dollars from the CBN to fund BDC operations. They will continue to operate in the autonomous market,” he said. He also threw more light on what he meant by supplying forex for critical transactions, stating: “There are people who would want to import plant and equipment to produce goods where raw materials are almost 100 per cent available locally. “We would support such attempts by people to set up factories, foreign direct investment coming in, or even local direct investment coming in, if they want to import plant and equipment and their raw materials are almost entirely available locally. “We will look for an opportunity to provide the incentives that they need to import the equipment so we can produce locally and stimulate growth. “Of course, where we have people who are producing items where the raw material content is so minimal, naturally we would give them assistance.
“But purely it would be for raw materials with content that is very low in terms of the import requirement, not people importing almost everything from plant and equipment to raw materials.” However, he said the committee recognised that the exchange rate is a very important macroeconomic variable, “which must be earned by increased productive activity and exports”, noting that the central bank had made very significant and satisfactory progress with the reform framework for the forex market. “The committee was of the view that the current adverse global and domestic economic and financial conditions and the imperatives imposed by the demand and supply shocks to the domestic economy and considering the express intentions of government as enunciated in the 2016 budget, the policy must respond appropriately as the market continues to demonstrate confidence in the bank’s ability to deliver a credible foreign exchange market. “Accordingly, the MPC decided that the bank should embrace some level of flexibility in the foreign exchange market. Given the imperative for growth, the management of the bank has been given the mandate to work out the modalities for achieving the desired flexibility that is in the overall interest of the Nigerian economy and when the implementation of the new framework would begin,” he said. Commenting on the outcome of the meeting of the MPC, financial analysts expressed divergent views on the decisions reached by the committee. Speaking in separate phone interviews with THISDAY, they however warned that the move by the central bank to continue to allocate forex to “critical transactions” could lead to abuse in the system.
The Deputy Managing Director at Acquila Capital Limited, Mr. Oyelami Adekola, said with inflation higher than the MPR, the decision by the MPC meant that the negative incentive to invest would continue. “This is because when inflation is 13.72 per cent, higher than your MPR of 12 per cent, then there is a big issue. Except you are telling me that the inflationary pressure is temporary, which I don’t think is the case. “That is because with petrol at N145 per litre and not likely to change and with importers not likely to get cheap dollars to import, that tells you that the inflationary pressure would continue,” he said. In terms of the MPC's pronouncement on exchange rate flexibility, Adekola said: “I think we don’t have any other option. With the MPC saying they are coming up with a flexible exchange rate structure, unlike what they have been doing which was all about attending to the demand side of forex, they are now attempting to address issues of the supply side. “That is because when you devalue, investors – the foreign direct investments and foreign portfolio investments – that have been waiting on the sidelines before would start taking us serious and that will boost the supply of dollars. When you boost supply of dollars, it reduces pressure on the parallel market. “I am sure they (MPC members) just want to watch out and see where inflation would go before they come up with measures to address the forex policy.” Also, a top bank executive, Mr. Abdulrahman Yinusa, said it was good to reintroduce the autonomous forex market, which according to him had been squeezed because there was no freedom of price determination when all the transactions were being done at N197 or N199.
According to Yinusa, what the central bank wants to do is to create some liquidity in the forex market so that the price can respond to supply and demand, noting that the CBN cannot continue to subsidise forex. “My only objection is the issue of still using the CBN rate for what they called ‘critical transactions’. There was no definition of what they called ‘critical transactions’. “It was a loose definition and there should be clarity because before you know it, CBN officials may abuse it if there is no clarity. In our own opinion, we would rather have everybody use the autonomous rate and move on. “I am also disappointed that they left all the rates unchanged. They didn’t change the CRR and MPR or even liquidity ratio. I am wondering why if Nigeria is almost heading towards a recession, nobody is trying to reflate the economy. “Nigerians had expected this at this point in time; they should have taken a gamble and put some money into the economy so that it can grow. “You cannot have an economy that is shrinking and you leave the interest rate unchanged. What they were supposed to do was to loosen liquidity. “We have to decide what to do – it is either we grow the economy or we continue to look at those statistics and keep saying we are focused on inflation-targeting. The economy is shrinking, so we need to increase money supply to jumpstart the economy,” he said. The Managing Director of Financial Derivatives Company Limited, Mr. Bismarck Rewane, described the decision by the MPC as a move in the right direction. “Adopting a flexible exchange rate policy is what I have been talking about for a long time and everybody knows that. Now, the question of having a rate for critical transactions is a
WEDNESDAY MAY 25, 2016 • T H I S D AY
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News Editor Davidson Iriekpen Email davidson.iriekpen@thisdaylive.com, 08111813081
PDP Crisis Worsens as Courts Grant Conflicting Orders Party’s govs, BoT, caretaker c’ttee to meet over discord
Davidson Iriekpen in Lagos, Ernest Chinwo in Port Harcourt and Onyebuchi Ezigbo in Abuja The leadership crisis in the Peoples Democratic Party (PDP) got messier yesterday when two Federal High Courts in Lagos and Port Harcourt, respectively gave conflicting orders sacking and according recognition to the Senator Ahmed Makarfi-led National Caretaker Committee
appointed by the 2016 national convention of the party last Saturday in Port Harcourt. In a verdict issued by Justice A.M. Liman, the Federal High Court sitting in Port Harcourt ordered the Independent National Electoral Commission (INEC) to recognise the Makarfi-led committee of the PDP and granted leave to the party to issue as “concurrent” the originating summons and other processes
Eni Declares Force Majeure over Bayelsa Pipeline Attack Eni, parent company of Nigerian Agip Oil Company (NAOC), yesterday said it has declared force majeure on oil exports from the Brass Oil Export Terminal off Bayelsa shoreline. Force majeure absolves companies from liabilities of contractual obligations due to factors outside its control. Eni according to the News Agency of Nigeria (NAN), also said the oil firm’s production was cut by 4,200 barrels per day following Sunday’s attack on its pipeline in Bayelsa. An earlier attack in the area on
May 18 had resulted to a shutdown of some 1,000 barrels bringing a cumulative production loss to 5,200 barrelsoftheoilfirm’sshareofoiloutput. Eni’s spokesperson confirmed the developments in a short email response on Tuesday. “I can confirm the attack to the Ogbaimbiri – Tebidaba pipeline, with 4,200 bop/d (Eni’s equity) of production affected. “I can confirm that Force Majeure has been placed on Brass Oil Exports from May 22, 2016,” the email from Eni’s Media Relations Unit said.
in the suit for service on the defendants/respondents outside the jurisdiction of the court in Abuja. The court also restrained Senator Ali Modu Sheriff, Professor Adewole Oladipo and other sacked members of the National Working Committee (NWC) and National Executive Committee (NEC) from parading themselves as officials of the PDP. The suit filed by the PDP has as defendants the former acting National Chairman, Sheriff; Professor Oladipo (sued as themselves and as representing national officers), INEC, Inspector General of Police (IG) and the State Security Services (SSS). The court further ruled that: “Senator Ali Modu Sheriff and
Professor Adewole Oladipo, the members of the National Executive Committee and members of the National Working Committee of the PDP who were removed from office by the National Convention of the PDP which held on Saturday, the 21st Day of May 2016 in Port Harcourt, Rivers State, be and are hereby restrained from parading/ holding out or continuing to hold themselves out either individually or collectively as the chairman, secretary or national officer or member of the National Executive Committee or National Working Committee of the PDP. “Nor do anything howsoever to negate or frustrate the decisions reached at the said convention, pending the hearing and
determination of the motion on notice.” The court restrained INEC from accepting and considering nominations, names or documents submitted, signed or endorsed by Sheriff, Oladipo and any other sacked member of the sacked NWC. Liman also ordered Sheriff, Oladipo and their sacked colleagues not to sign or endorse documents in such capacities as they were prior to their removal, pending the hearing or determination of the notion on notice. Commenting on the court order, the Chairman, PDP Convention Screening Committee and Attorney General and Commissioner for Justice, Rivers
State, Emmanuel Aguma (SAN), said the PDP sought the interim orders pending the hearing on the motion on notice and those interim orders were granted. He explained: “Essentially, the gist of the interim orders can be summarised as follows: One, that the removed national officers should not parade in that office or parade themselves as officers of the party (PDP); Two, that the national PDP National Working Committee (NWC) and the National Executive Council (NEC) should not function as organs of the party, pending the hearing and determination of the motion on notice. “And similar to that was
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EFCC Declares Omisore Wanted over N700m Payment from ONSA Senator Iroegbu in Abuja The Economic and Financial Crimes Commission (EFCC) has declared the former Deputy Governor of Osun State, Senator Iyiola Omisore, wanted over alleged misappropriation of funds. This was disclosed yesterday in a statement by the Head, Media and Publicity, EFCC, Mr. Wilson Uwujaren, who said Omisore is wanted in connection with a case of receiving and misappropriating the sum of over N700 million from the Office of the National Security Adviser (ONSA), between June and November, 2014. Uwujaren stated that the Peoples Democratic Party (PDP) chieftain had been elusive and refused to report to the commission after invitation was extended to him on April 7, 2016, requesting him to come and make clarification on the ongoing investigation. Instead of responding to the commission investigation, he said Omosore had approached the Federal Capital Territory (FCT) High Court for the enforcement of his fundamental human rights. “Justice Husseini Baba Yusuf consequently ordered that Omisore should only be arrested through a due and legal process,” he said. According to him, the EFCC had thereafter obtained a warrant to effect the arrest of the politician. But Omisore, while reacting to the decision to declare him wanted last night, said it was not only the height of mischief but a deliberate attempt by the anti-graft agency and its leadership to tarnish his image and assassinate his character. In statement made available, he said it was now clear that the EFCC was indeed playing out the script of
persecuting and harassing perceived opposition groups in the country. The statement read: “To be sure, there is no basis for the EFCC so-called statement. Only on Tuesday, May 24, we appeared in court with the EFCC asking for the permission of the court for an extension of time in the preliminary objection to a suit filed against me. “The Managing Director of Firmex Gill which the EFCC joined in their case indemnified me from the company’s contracts and any such obligations. “In other words, there is nothing relating to me in the company’s contract deal with the ONSA. The company has even sued the ONSA for its inability to pay the balance of the contract so awarded to it. “Therefore, I am not aware of any issue relating to a contract sum of N700 million. There was no issue of N700 million anywhere. “The relationship between the company and ONSA is civil and contractual, which has nothing to do with me. Besides, so long as their business transactions are legitimate and since I am not directly managing the company, how am I to know who and who they do business with? “The EFCC should not be seen playing the role of political victimisation of innocent individuals, coercion and blackmail. “How can you declare someone you were in court with at 9a.m today wanted the same day, a few hours afterwards? I am appealing to all human rights and civil society organisations to caution EFCC from damaging my reputation further. I “If they have facts, I challenge them to bring them to court and not resort to blackmail, intimidation and victimisation.”
BRIEFINGTHE MEDIA
L-R:Governor,CentralBankofNigeria(CBN), Mr.GodwinEmiefele; DeputyGovernor,EconomicPolicy,Mrs.SarahAlade; DeputyGovernor,Operations,Mr. SuleimanBarau,duringapressbriefingbytheCBNgovernoratMonetaryPolicyCommitteemeetinginAbuja....yesterday EnockReuben
NEITI Wants Fresh Investigation into NNPC’s Oil Block Transfers Says $1.167m gas revenue lost in exchange rate variations Chineme Okafor in Abuja The Nigeria Extractive Industries Transparency Initiative (NEITI) has asked the federal government to investigate again the various oil blocks the Nigerian National Petroleum Corporation (NNPC) had assigned in the past. Specifically, NEITI said it wants the government to investigate NNPC’s divestment and/or transfer of oil blocks to its subsidiary, the Nigerian Petroleum Development Company (NPDC) in 2011 and 2012. NEITI and other independent audit exercises had in the past described the terms under which NNPC assignment of oil blocks to NPDC as controversial. Bringing up the issue in its 2013 audit report on Nigeria’s oil and gas industry which it released last Monday in Abuja, NEITI said there was need for the government to revisit the transactions.
It said it wanted the government to undertake fresh comprehensive investigation into NNPC’s past divestment exercises. The content of the report was presented by the Chairman of NEITI’s board and Minister of Solid Minerals Development, Dr. Kayode Fayemi. The report said the NNPC acknowledged it divested its interest in Oil Mining Leases (OMLs) 26, 30, 34, 40, and 42 which it operated in joint venture with the Shell Petroleum Development Company (SPDC) in 2011 to NPDC with the authorisation of the minister of petroleum resources. NEITI also noted that the consideration for four other OMLs NNPC operated in joint venture with Nigeria Agip Oil Company (NAOC) and which was assigned in December 2012 to NPDC was not paid and the
deed of assignment contained no mention of the value to be paid. “Eight OMLs assigned to NPDC from Shell JV between 2010 and 2011 were valued at $1.8 billion but only $100 million was paid leaving an outstanding of $1.7 billion in year 2011. “No reasons were given for the transfer other than exercise of ministers’ legal authority and development of NPDC’s upstream capacity,” NEITI in its 2013 audit reports, said. It however stated that: “Federal government to conduct a comprehensive investigation on the circumstances that led to the divestments, transactions and operations of all assets transferred by NNPC to NPDC.” NEITI explained that despite the alleged transaction anomalies, NPDC has continuously enjoyed full rights and benefits accruing
from the assets transferred to it. NEITI also said Nigeria in 2013 lost $1.167 million of its expected gas sales revenue to disparities in naira-dollars payment for gas purchases into the federation account. The report stated that the total value of gas to the tune of $616.006 million was invoiced by the Crude Oil Marketing Department (COMD) of NNPC and there was a net receipt of $381.095 million, consisting of $271.316 million as direct transfer from traders and $109.780 million as Natural Gas Liquids (NGL) price balance. It said they were traced to a JP Morgan Chase gas revenue account but that there was an exchange loss of $1.167 million. It noted that this was due to gas sales being valued in dollars, invoiced in naira and payment made into JP Morgan in dollars for subsequent remittance into federation account in naira.
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WEDNESDAY MAY 25, 2016 • T H I S D AY
NEWS
Fuel Price Hike: FG, Labour Meet Today, to Continue Negotiations Major marketers insist on full deregulation Mull investment in private refineries Ejiofor Alike in Lagos and Paul Obi in Abuja The federal government and the Nigerian Labour Congress (NLC) are expected to meet today in continuation of negotiations on the fuel pump price increment and removal of subsidy. According to the Director of Press, Ministry of Labour and Employment, Mr. Samuel Olowookere, the meeting would take place in the office of the Secretary to the Government of Federation (SGF). Olowookere said: “The negotiation between the federal government and Ayuba Wabbaled NLC would reconvene today at 2p.m. and the venue is the conference hall of the Office of the SGF.” THISDAY could not confirm the participation of NLC at today’s meeting. All efforts to reach the Secretary General of NLC were not fruitful as he was not available for comments. Meanwhile, the ultimatum by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to embark on a nationwide strike effective mid-night, of May 24, 2016, has been suspended. This was sequel to the intervention of the Minister of Labour and Employment, Senator Chris Ngige, and the Minister of State for Petroleum, Dr. Ibe Kachikwu. In a conciliatory, pre-strike meeting yesterday in Abuja, Kachikwu held talks with PENGASSAN and other stakeholders on the vexed issue of Joint Venture Cash Call, (JVCC), the arrears of which have not been paid to the Joint Venture partners, hence the threat by the International Oil Companies (IOCs) to lay off their Nigerian workers while refusing to pay some of their allowances due to an alleged shortage of cash. Kachikwu explained that his ministry was restructuring the operational modalities of the Joint Venture Cash Call especially in view of the low oil prices but assured the union, the JVCC partners and other stakeholders of positive and agreeable results when the meeting reconvenes in late June. Ngige who hosted the meeting, promised that the oil industry stakeholders’ committee
dealing with the issues of labour malpractices like long contracting of staff, casualisation and unilateral declaration of redundancy by the oil contractors and the IOCs on the one hand, as well as the unnecessary and incessant issuing of threats of strike by the unions would resume next month. “We all recall that this committee was headed by the late Minister of State for Labour and Employment, James Ocholi, but in view of the importance and the urgency of the committee, I will assume its full leadership in June to accelerate and bring its assignment to a fruitful completion, part of which is to generate some oil- labour regulations into laws for the Petroleum Industry Bill (PIB),” he said. The National President of PENGASSAN, Francis Johnson, thanked the two ministers for the elucidative and insightful responses to their agitations and assured them that the union was quite satisfied with the position of government on issues in conflict, therefore, the decision to shelve the planned strike with immediate effect. Inputs from the Ministries of Finance, Budget and Planning, and that of Works, Power and Housing on other issues raised by the union are expected at the next meeting scheduled for June 23, 2016. Meanwhile, Major Oil Marketers Association of Nigeria (MOMAN) has insisted that only a full deregulation of the downstream sector would provide permanent solution to the perennial challenges associated with sourcing petrol and foreign exchange. This is coming as some major and independent marketers are considering the possibility of investing in private refineries following the recent price adjustment by the federal government. The Executive Secretary of MOMAN, Mr. Obafemi Olawore, however, told journalists in Lagos yesterday that deregulation and not the recent price fixing or price adjustment would permanently resolve the challenges in product supply and souring foreign exchange. Olawore noted that the price adjustment was a necessary step forward but added that only a deregulated market would resolve the challenges permanently. “To me, deregulation is not
what happened. What has happened is price adjustment – what the government chooses to call appropriate pricing, which is a step along the line. To me, full deregulation should see us starting from the refining process,” he said. He added that: “There was a time we had full deregulation in Nigeria. When we had full deregulation, the major marketers then were: Esso, Total, Agip, Mobil, Texaco, Shell and BP. Shell and BP built a refinery in Port Harcourt and operated the refinery. What the other marketers did was to buy their crude oil and take to the refinery to refine and they pay the refining fee. When pay the refining fee, you take the product to your own tanks. And in those days, apart from Apapa, Shell had tanks in Port Harcourt, while Mobil had tanks in Bukuru, Jos. Port Harcourt refinery was linked to these tanks by the rail system. So, you take your product to your tanks and store it there and from there, you move your product to your retail outlets. So, deregulation should start at the point you source for your crude and take to a refinery. When this happens, Marketer A will have different overhead and refining fee from Marketer B, so that each marketer will sell at different price,” he explained. Olawore recalled that in those days, Agip use to sell petrol at the lowest price among all the marketers. “Deregulation should enable each marketer decide the price it wants to sell. Deregulation should enable each marketer to sell different grades of the same product. You may have come across the fact that in Nigerian filling stations in those days, we use to sell Regular Petrol, Super Petrol, Premium Petrol and Five Star Petrol, which was meant for big SUVs. So, you could go to filling stations to buy the type of petrol that suits your car and these products were sold at different prices. That is deregulation, not price fixing,” Olawore said. Olawore pointed out that but for the support being provided by the international oil companies (IOCs) in the supply of foreign exchange under an arrangement brokered by the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, the major marketers would have found it very difficult to access forex at reasonable price.
Edo Govt Approves Appointment of New Oba of Benin Adibe Emenyonu in Benin City The Edo State Government yesterday approved the appointment of Edaiken N’Uselu, Crown Prince Eheneden Erediauwa as the Oba of Benin, with effect from April 29, 2016. In a letter dated May 24, 2016, signed by the Secretary
to State Government (SSG),Prof Julius Omozuanvbo Ihonvbere, titled: ‘Appointment of Edaiken N’Uselu, Crown, Prince Eheneden Erediauwa, as the Oba of Benin’ the government said: “It has hereby notified for general information that in exercise of the powers conferred by Section 19 (1) of the Traditional
Rulers and Chiefs Law, 1979 (as amended) and by virtue of all other laws enabling it in that behalf, the Executive Council of the state government has approved the appointment of Edaiken N’Uselu, Crown Prince Eheneden Erediauwa, as the Oba of Benin, with effect from April 29, 2016.”
T H I S D AY WEDNESDAY MAY 25, 2016
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T H I S D AY • WEDNESDAY, MAY 25, 2016
COMMENT
Editor, Editorial Page PETER ISHAKA Email peter.ishaka@thisdaylive.com
TREADING A FAMILIAR ROAD
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Sonnie Ekwowusi urges the Buhari administration to implement measures to cushion the effects of the hike in cost of petrol
f anything, the pain, anguish and suffering afflicting most Nigerians at the moment owing to the recent increase in the pump price of fuel and deregulation of the downstream petroleum sector are reminders of our ugly past. We are treading on a familiar road. Having walked this road in the past to our utter ruin I thought that by now we should have been journeying to the much-trumpeted prosperity and progress promised us by the All Progressives Congress (APC) during the electioneering campaigns. You will recall the war that broke out in January 2012 after the Goodluck Jonathan government did exactly what the APC has recently done, that is, removal of subsidy regime. The Nigeria Labour Congress (NLC) strike at that time assumed the shape and colour of what was dubbed the “Nigerian Spring” reminiscent of the people’s revolution which swept across the Arab countries (Arab Spring) around the same time. In different Nigerian major cities protesters from different walks of life-adults, children, literates and not-so-literates, market women, school pupils, street urchins, kidnappers, armed robbers, the physically challenged – all took to the major streets in protest. But it was the massive crowd that thronged the Gani Fawehinmin Park, Ojota, Lagos, that was the cynosure of all eyes. Every morning protesters of all callings trekked all the way from their respective houses to occupy the Ojota esplanade. They sang, danced and spoke out boldly in public to the risk of their lives. Capitalising on the situation at that time, the APC lambasted the Jonathan government for its insensitivity to the plight of the suffering masses by daring to do away with the fuel subsidy regime. Prior to his inauguration as president, Mr. Mohammadu Buhari denied the existence of any fuel subsidy and even went ahead to promise that if voted into power he would not remove any fuel subsidy because such removal would engender galloping inflation that will hurt the Nigerian people. The rest is now history. We have seen the much-vaunted change. Nigeria ntooooooor! Have we been hoodwinked or are we under a spell? Why all these rigmaroles and policy somersaults? Who would have imagined that we would have gone back to our vomit today? With the greatest respect, the ongoing fuel subsidy removal arguments being canvassed in the mainstream media are completely misplaced. The argument is not whether the removal of fuel subsidy or the increase in the pump price of fuel by the Buhari government is justifiable or not: the argument is whether the Nigerian people deserve the excruciating suffering they are presently being subjected to at this time when governments all over the world are doing everything possible to improve the wellbeing of their citizens. The 21st century economic development approach is more concerned with the welfare of the people and less concerned with the strangulating World Bank or IMF economic theorems designed for developing countries that deflate the living standard of their citizens. The goal of the 21st Century economic development approach is to enable individuals to have access to the most basic necessities of life such as having a roof over their heads and food on their tables, and shoes on their children’s feet. In other words, the emphasis has shifted from sheer economic precepts, jingoism and legalism to
humanness, empathy, mercy and understanding. Now that Buhari has seen the wisdom in deregulation and increase in the pump price of fuel, he should be wise enough as well to design and implement policies that will cushion the drastic effects. If Mr President admits that he appreciates the pains the Nigerian people are presently going through, he should be in the know that life is not liveable in Nigeria at the moment. For example, the average Nigerian family is a government of its own. It powers its own generator to generate its own electricity; it has to provide its own water; provide its security to be free from kidnappers and armed robbers; provide its own school because most public schools are now rotten; provide its own hospitals in India because primary health care system is virtually non-existent in Nigeria, and so forth. It is highly disturbing that in the last few years, Nigeria has consistently featured on the negative side of the different human development reports in the world. These reports indicate that life expectancy in Nigeria is about 52 or even below; real income of most families has woefully reduced; unemployment is scandalously high. Nigeria is topping the list of countries with malnourished children. Nigeria is being ranked as the 20th hungriest country in the world. So, life is not liveable in Nigeria. And that explains why the average Nigerian is wont to take to the street any day any time to protest increase in the pump price of fuel or hike in electricity tariff or any such price imposition that will further compound his woes. Therefore as the Buhari government marks one year in office it should initiate concrete policies to cushion the excruciating effects of the increase in the pump price of fuel. So far, President Buhari has failed to keep his election campaign promises. For example, he has reneged on his promise to pay unemployed Nigerian N5, 000; he has failed to crush Boko Haram in six months after assuming office as he promised; he has removed fuel subsidy; he has failed to make N1 to equal $1 US; he has failed to turn the presidential fleet into a national carrier. Instead he is now cruising around on presidential jets. The only thing present in the lives of many Nigerians at the moment is the Economic and Financial Crimes Commission (EFCC). The EFCC is everywhere purportedly fighting corruption. However the truth of the matter is that fighting corruption and improving the well-being of Nigerians are not mutually exclusive. Therefore the former cannot supplant the latter.
THE ARGUMENT IS NOT WHETHER THE REMOVAL OF FUEL SUBSIDY IS JUSTIFIABLE OR NOT: THE ARGUMENT IS WHETHER THE NIGERIAN PEOPLE DESERVE THE EXCRUCIATING SUFFERING THEY ARE PRESENTLY BEING SUBJECTED TO
Now that the budget has been signed and due for implementation, the federal government should end the present miseries. The greatest challenge facing the Buhari government is diversification of the economy by making the country less dependent on oil. The government should immediately marshal out concrete initiatives to boost food production in Nigeria. If neigbouring African countries such as Cameroun which are not as richly-endowed as Nigeria are producing enough food to feed her citizens, why can’t Nigeria do so with all her abundant resources? Basic food production must not fall prey to power politics. Government and banks should develop schemes to provide credit facilities to farmers to invest in mechanised agriculture. Massive rural-urban drift decimating the rural farm workforce should be tackled by making the rural areas attractive for young rural job seekers.
UNIVERSAL HEALTH, UNIVERSAL RIGHTS Access to health care is a fundamental human right, argue Gro Harlem Brundtland and Graça Machel
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ood health is the mainstay of a good life. This may seem like a truism, but for too many people it does not reflect their lives and their children’s prospects. Hundreds of millions of people are currently denied health services or are plunged into poverty because they are forced to pay unaffordable fees. In some situations, women and children are even detained in hospitals because they cannot pay their medical bills. This flies in the face of human dignity, and is at odds with countries’ human rights obligations. Following the agreement on the Sustainable Development Goals (SDGs) last September, all countries are now committed to achieving Universal Health Coverage (UHC) by 2030. UHC means that everybody receives the health services they need without suffering financial hardship. The World Bank, the World Health Organisation and other international institutions all agree that UHC saves lives, boosts economies and stabilises societies. This is why The Elders have launched a new initiative to campaign for Universal Health Coverage. We believe UHC makes political and economic sense. When people’s lives are
stunted or end prematurely, this is not only a terrible tragedy for them and their families, it is a loss for the community at large. Unmet health needs also reduce economic productivity and stop children and adolescents from realising their full potential in school, at home and later as adults. Some will say that in a world plagued by conflict, terrorism and economic insecurity, UHC is a utopian dream. But we know this is not true. Before the Second World War, many countries even in prosperous Western Europe did not enjoy universal health coverage and there was a huge discrepancy between the health prospects of the rich and poor. The post-war human rights revolution changed this forever. Initially across Europe, but then across Asia and the Pacific too, countries launched publicly financed health systems as the bedrock of a new social contract. In Norway, one of the architects of the public health system, Karl Evang, pioneered this international approach by co-founding the World Health Organisation in 1948. UHC reforms also extended to Latin America and are now spreading to Africa. Poor countries like Rwanda and Ethiopia lead the way. If this has been achieved in 70 years, how
can we possibly say it cannot be achieved in all nations by 2030? UHC is critical for the SDGs to become a reality. Money should not be the deciding factor for access to healthcare. Heads of state, ministers of health and, crucially, finance ministers must show they have the political will to make UHC a reality. Tough decisions need to be taken and powerful vested interests faced down. Universal coverage is the ultimate destination but we must get there equitably. Good quality health services should be provided free at the point of use for women, children and adolescents as a first step in a nation’s UHC strategy. To improve access to services and maximise efficiency, countries should focus their UHC packages on primary health care delivered close to where people live. We firmly believe that only public financing can deliver universal health coverage. A free market where medical services are traded like a commodity will never deliver decent health care to the poor and vulnerable. But UHC is about more than just financing. Countries will need to strengthen their health systems in areas such as human resources, medicines, infrastructure and information systems.
Nelson Mandela, founder of The Elders, once said that there were four basic and primary things people wish for: “to live in a safe environment, to be able to work and provide for themselves, to have access to good public health, and to have sound educational opportunities for their children”. We believe UHC is key to realising this vision, and are encouraged by the growing international consensus that it is an “affordable dream”. That is why we urge the G7 nations to show leadership and to make political and financial commitments to UHC at their upcoming summit in Japan. This would be a clear signal from the most powerful economies that “business as usual” will not do if the world is serious about implementing the SDGs. Access to health care is a fundamental human right. No mother should lose a child, or lose her own life, because she cannot afford health care. When ministers decide their actions and priorities, The Elders will act as a “voice for the voiceless” and campaign for truly universal health care as a human right for all.
Brundtland is a former prime minister of Norway while Machel is the widow of former South African president, Nelson Mandela
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T H I S D AY • WEDNESDAY, MAY 25, 2016
EDITORIAL A TIME FOR SHARED SACRIFICE
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The economic downturn offers a great opportunity to prune the cost of running government
n more than 25 states of the country today, salary arrears are mounting and so are pensions obligations. Basic services are no longer being provided while in a few states workers have taken to begging. With dwindling revenues from the sale of crude oil, no government (whether at the federal or state level) in Nigeria has taken the diversification of the economy beyond rhetoric. And with unrestrained official profligacy, many states and local governments are almost bankrupt while the federal government is finding it difficult to stay afloat. Yet even at a time like this, our public officers still allocate to themselves jumbo travelling allowances or estacodes while our legislators remain the highest paid in the world. Besides, after collecting allowances for vehicles, which are already monetised, federal legislators have also placed orders for the purchase of exotic cars. Perhaps because there is not much lawmaking going on, these same legislators have opted for the business of executing constituency projects and conducting public hearings on all matters, including the investigation of criminal offences and IF THE ORDINARY PEOPLE ON THE STREET the audit/probe of public accounts—jobs MUST SACRIFICE TO meant for the police KEEP THE COUNTRY AFLOAT, THOSE ELECTED and office of the auditor-general. OR APPOINTED TO There are several SERVE THEM CANNOT questions begging for CONTINUE TO LIVE IN answers in Nigeria OBSCENE OPULENCE today about the structure of government. With houses of assembly in all the 36 states, what is the justification for retaining the legislative council in each of the 774 local government councils and the six area councils in the FCT? Does democracy have to sack the treasury to serve the cause of freedom? Can a democratic polity led by an unproductive elite promote development? Where the laws and rules for the appropriation of public funds are made by the same people responsible
Letters to the Editor
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for the high cost of government, who will bring the system to order? But much more importantly, how long can the nation continue to sustain this gruelling rip-off at the expense of the poverty-stricken people of Nigeria? Up till now, no tier of government in the country has taken steps to reduce the expensive cost of running the public service. Over 70 per cent of the budget still goes for servicing our parasitic bureaucracy. No government has reviewed projects that constitute a drain on public treasury. To worsen matters, across the country today, there is no sign that we are going through tough times. Governors travel so regularly to Abuja and other places in private jets paid for from the treasury. Many of them still move around in long convoys while retaining hundreds of idle aides.
S T H I S DAY
EDITOR IJEOMA NWOGWUGWU DEPUTY EDITOR BOlAJI ADEBIYI MANAGING DIRECTOR ENIOlA BEllO DEPUTY MANAGING DIRECTOR KAYODE KOMOlAfE CHAIRMAN EDITORIAL BOARD OlUSEGUN ADENIYI EDITOR NATION’S CAPITAL IYOBOSA UWUGIAREN
T H I S DAY N E W S PA P E R S L I M I T E D
EDITOR-IN-CHIEF/CHAIRMAN NDUKA OBAIGBENA GROUP EXECUTIVE DIRECTORS ENIOlA BEllO, KAYODE KOMOlAfE, ISRAEl IWEGBU, EMMANUEl EfENI, IJEOMA NWOGWUGWU GROUP FINANCE DIRECTOR OlUfEMI ABOROWA DIVISIONAL DIRECTORS PETER IWEGBU, fIDElIS ElEMA, MBAYIlAN ANDOAKA, ANTHONY OGEDENGBE DEPUTY DIVISIONAL DIRECTOR OJOGUN VICTOR DANBOYI SNR. ASSOCIATE DIRECTOR ERIC OJEH ASSOCIATE DIRECTORS HENRY NWACHOKOR, SAHEED ADEYEMO CONTROLLERS ABIMBOlA TAIWO, UCHENNA DIBIAGWU, NDUKA MOSERI GENERAL MANAGER PATRICK EIMIUHI GROUP HEAD fEMI TOlUfASHE ART DIRECTOR OCHI OGBUAKU II DIRECTOR, PRINTING PRODUCTION CHUKS ONWUDINJO TO SEND EMAIL: first name.surname@thisdaylive.com
ome ministers, senators and other public officers earn double or triple salaries while no state has reduced the scandalous pension package for ex-governors in terms of salaries for life, houses in the state capitals and Abuja, medical, vehicle and other allowances. At the federal level, some officers serve for four or five years and retire at less than 50 years of age in some agencies only to be paid an exit package of between N200 million and N500 million. Our austere president has retained the 11 planes inherited by him. Granted, democracy is expensive everywhere, but it is scandalously more so in our country due largely due to the personal aggrandisement and greed of the average Nigerian political office holder. However, against the background of dwindling oil prices that has in turn made the federal government to hike the price of petrol with the attendant implications for majority of Nigerians, should public officials at the state and federal levels still retain all their privileges? We believe there can be no better time than now to review the structure of government in Nigeria. If the ordinary people on the street must sacrifice to keep the country afloat, those elected or appointed to serve them cannot continue to live in obscene opulence.
TO OUR READERS Letters in response to specific publications in THISDAY should be brief (150-200 words) and straight to the point. Interested readers may send such letters along with their contact details to opinion@thisdaylive.com. We also welcome comments and opinions on topical local, national and international issues provided they are well-written and should also not be longer than (9501000 words). They should be sent to opinion@thisdaylive.com along with the email address and phone numbers of the writer.
INNOSON AS NIGERIA’S BRAND
eveloped countries of the world such as Germany, Sweden, USA, UK and many others are synonymous with the brand of vehicles they manufacture. This method of branding is perhaps the oldest, unacknowledged and unadvertised means of branding, yet it remains the most potent means of showcasing a country and its products. We can easily remember Germany as the source of Mercedes; Ford and Chevrolet are made in the USA; UK manufactures Rolls Royce; Sweden is known for Volvo andJapan is synonymous with Toyota. Today we can be proud to say that Nigeria is known with INNOSON. As the first indigenous automobile manufacturer, it is remarkable that INNOSON delved into an area that if well tapped can indeed be Nigeria’s brand across the globe. It is possible and realisable when we take pride in our own products. It is indeed comforting that the President Muhammadu Buhari administration has made the promotion of made in Nigeria products as one of its cardinal objectives. This policy can be put into practical action by patronising INNOSON vehicles, especially now that the budget has been signed into law. There should be a deliberate effort to encourage the ministries, departments and agencies (MDAs) to procure only made in Nigeria vehicles. This patronage will have multiplier effects, as jobs will be created for Nigerian youths, while the elusive technology transfer will be brought to our doorstep. It is pertinent at this juncture to dismiss spurious claims or
allegations by some vested interests against INNOSON, as they tend to set the hand of the clock backwards. As a people, we must abandon petty issues, and join hands with patriotic corporate organisations like INNOSON to move the country forward. Additionally, we owe it as a duty to fully support President Buhari in his administration’s policy of diversification. With the nation’s dwindling oil fortunes, it will be foolhardy to put our eggs in one basket, hence the need to support INNOSON in providing alternative avenues for revenue generation, foreign exchange earnings and job creation. Before they ventured into the sector, we were totally dependent on the importation of foreign vehicles as a nation. Today, the vision has crystallised into the manufacturing of Nigeria’s first indigenous vehicles ranging from buses, trucks, cars, sport utility vehicles and refuse trucks. Needless to say that our over dependence on imported vehicles has led to capital flight, loss of jobs for our teeming youths and backwardness in skills acquisition. As a patriotic Nigerian company, INNOSON has assisted the federal government in the area of skills acquisition for Nigerian youths. This approach has widened the scope of technological know-how in our youths, especially those from the Niger Delta region.It is therefore desirable that all hands should be on deck to support the efforts of INNOSON at repositioning Nigeria’s automobile sector. It is pertinent to note that on account of INNOSON’s innovative ideas, other auto manufacturers who hitherto saw Nigeria as an export
destination have started setting up assembly plants in Nigeria. This move has the potential to create additional jobs for our numerous unemployed youths, and will facilitate the much-awaited technological transfer. So far, both the local, state and federal governments have lent their appreciable support to INNOSON through patronage of their products, but we need to go a step further by ensuring that some disgruntled elements don’t kill the lofty dream of Nigeria to become an automobile manufacturing country. It seems that some vested interests want to return the country back to the era when we totally depended on imported vehicles. As a company that has made Nigeria proud by venturing into an area previously reserved for Europeans and Asians, INNOSON ought to be given necessary incentives to grow and expand as a conglomerate. Such expansion will enable them provide more jobs for Nigerians, ease the transportation problems in the country, and provide an enabling environment for the nation’s technological and economic growth. It is the considered view of most Nigerians that this patriotic company should not be maligned on trumped up charges by any group or individuals bent on executing any hideous or premeditated agenda. INNOSON is the pride of the nation and so far their untiring effort at lifting the image of Nigeria as an automobile – manufacturing country should be supported. Chukwudi Enekwechi, Abuja
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T H I S D AY • WEDNESDAY, MAY 25, 2016
MIDWEEKPOLITICS
Group Politics Editor Olawale Olaleye Email wale.olaleye@thisdaylive.com 08116759819 SMS ONLY
THE NEWSMAKER
Makarfi Takes the Tough Job
Segun James writes that with the decision of former Kaduna State governor, Senator Ahmed Makarfi to take up the chairmanship of the crisis riddled Peoples Democratic Party; he has agreed to take up a very Herculean task
S
imply put, the main task before the new chairman of the main opposition party in Nigeria today, the Peoples Democratic Party (PDP), Senator Ahmed Makarfi, after the drama and the intrigues of last Saturday’s (parallel) convention, is to give effective direction for the factionalised party. Within the three months that he will be holding forth, he would be expected to bring the various camps together and at the same time conduct due diligence on the quality of those aspiring to the leadership position and ensure that only the best and most credible are elected to steer the ship of the party towards 2019 elections when the party hopes to wrest power from the ruling All Progressives Congress (APC). There is no doubting the fact that the PDP needs to eliminate all those factors that are making leadership selection system chaotic, considering all the leadership tussles that led to the circumstances of the last national convention of the party that threw up Makarfi as the acting chairman of the party for the next 90 days. Before and after the 2015 elections which the party lost at the federal level, state level and at the National Assembly, the once “largest party in Africa” has faced the threat of extinction, not only because the party was beaten blue and black, but more because the stakeholders in the party have been at loggerheads over who becomes the leader. A collection of article published where opinions of Nigerians were sought on the real problems bedeviling the former ruling party, one issue worth noting was that people consider the PDP as a party where reconciliation hardly works because even when there is “reconciliation,” the warring parties only sheathe their swords for a while before returning to the trenches for more battles. For instance, a former Kaduna State governor, elder statesman and chieftain of the PDP once said that reconciliation in the party has not achieved positive results because people are not honestly committed. To him, all the crises that the party has had are self-inflicted. On his part, a central player in the formation of the APC, Prince Tony Momoh, in one of his comments on the PDP long before the current crises, expressed the opinion that peace has always eluded the party because of the inordinate ambition of leading members, who have turned the party into a personal property after edging out its founding fathers. “The Peoples Democratic Party has many well-meaning, mature, committed politicians that came together to form the party. I mean the likes of Chief Alex Ekweme, Solomon Lar, the late Abubakar Rimi and others, they meant well for Nigeria. They wanted to grow Nigeria; they had a programme for achieving this. The group that I am talking about included Alhaji Atiku Abubakar, but unfortunately, after 2003, those who inherited the structure distanced themselves from the programme.” “The previous arrangement or previous path of the People Democratic Movement (PDM) which was Yar’Adua’s party that Atiku inherited was changed when Obasanjo had it deregistered. The PDM was the most organised group within the PDP. After Obasanjo return in 2003 when he had to kneel down to beg Atiku in the course of seeking re-election and how he later wage a war of attrition against Atiku and his loyalists. You can now see that between 1999 when we went back to civil rule, that journey was truncated through
Makarfi…all eyes on him
greed and corruption. PDP which has been the umbrella of such evil has been caught by the law of diminishing return. It is facing the problem which it cannot recover from.” A political analyst, Mallam Moyo Jaji, shares Momoh’s views. He noted that: “The problem with the PDP has to do with the fact that it derailed from the objectives of the founding fathers of the party,” stressing that “Most of those who formed the party have been sent out of the party. There has not been internal
Within the three months that he will holding forth he would be expected to bring the various camps together and at the same time conduct due diligence on the quality of those aspiring to the leadership position and ensure that only the best and most credible are elected to steer the ship of the party towards 2019 elections when the party hopes to wrest power from the ruling All Progressives Congress (APC)
democracy in the party.” The discordances in the party have cost it so much. For instance, in 2011, before some members walked out at the 2013 August convention, the PDP controlled 23 states while the other parties shared the remaining. It was only the defunct Action Congress of Nigeria (ACN), which was an integral part of the APC that had six governorship positions. The centre ceased to hold for the PDP when some governors walked out of the party’s convention. This is principally why the party lost the 2015 presidential election because five governors from the party joined the opposition that eventually snatched power from the PDP on March 28, 2015. The party, which had controlled power since the advent of the fourth republic is not used to defeat and to many analysts, the current imbroglio is a product of the shock of sudden loss of power. To some others, it is the result of greed and selfish interest of some members who are already calculating ahead of 2019. Against the background of the fact that for democracy to survive in Nigeria, there is need for a formidable opposition as the PDP and the eagerness of members of the party to reclaim its lost glory, the acting chairman and well-meaning members of the party must brainstorm on how best to achieve lasting peace and at the same time, members must imbibe the culture of give and take and the spirit of true reconciliation. Though the time is short – 90 days, which is already counting, the leadership of the party should be asking probing questions such as: how can the party utilise its position as a strong opposition in the coming years? Can the PDP reform itself and how? Will the party bounce back to snatch victory from the APC in the coming years? How does the party handle the
problem of most of its prominent members who are having cases with the Economic and Financial Crimes Commission (EFCC)? What are being put on ground to serve as incentive for members of the party to stop further defection to the ruling party? And whatever that would be, it must also come with considerable internal democracy structure and eradication of impunity in the party. There is also the problem of decamping; the opposition party is losing a number of its committed members to the APC by the day. Just recently, Senator Smart Adeyemi from Kogi West senatorial district dumped the PDP for the APC dues to what his supporters consider has ill-treatment of the lawmaker. The party must fashion out a way to persuade members from decamping and make them realise that strong parties are not formed when members bolt away after electoral failure. It is something that PDP members must accept; and learn from former Lagos State governor and APC leader, Senator Bola Tinubu, who doggedly weathered the storm to give Nigeria a very strong opposition since 1999. He never attempted joining the PDP. He endured persecution, especially during the time of former President Obasanjo’s administration. He quietly organise the opposition that gave birth to the APC through the merger of the All Nigerian Peoples Party (ANPP), Congress for Progressive Change (CPC), some part of the All Progressives Grand Alliance (APGA) and the Action Congress of Nigeria (ACN). While the crises in the PDP festers, members of the party are looking forward to the Makarfi leadership to pull the party from the wreckage of defeat, restore peace and harmony to the party. These can only be achieved if all the issues on ground are dispassionately addressed before the next convention, otherwise the party could be heading for its end if sectional and not broad interests are serviced.
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T H I S D AY • WEDNESDAY, MAY 25, 2016
UPDATE&TRENDING
MIDWEEKPOLITICS
Frugal Udom Saves Akwa Ibom from Indebtedness Akwa Ibom State Governor, Mr. Udom Gabriel Emmanuel’s decision not to take a bailoutfundfromthefederalgovernmentlastyearinspiteofthehardshipthatNigerians witnessed is still being widely commended by his people, Anayo Okolie writes
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hile some governors saw the bailout fund gesture by the federal government as the opportunity to salvage hardship in their states some others saw it as a means to enriched themselves but for the Akwa Ibom State Governor, Mr. Udom Gabriel Emmanuel, the fund would simply mortgage the future of Akwa Ibom State, hence he did not collect it. The governor’s position has been widely commended by citizens of the state who also considered it as a way not to mortgage the future of the state though it is clear that the Nigerian economy is in crisis because of the various indices that has shown decline in the country’s economy. Oil is the mainstay of the Nigerian economy and foreign exchange earnings and the country benefited immensely from sales of crude oil in the past but the decrease in the sales of crude oil at the international market has contributed mainly to the dwindling economy of Nigeria as the price of oil has fallen from about $140 per barrel to $40 per barrel. The exchange rate and value of naira to other foreign currencies has also fallen as well and this development has had negative effect on business transaction in the country. Some school of thoughts have attributed bad governance and waste of public funds as another cause of the decline in Nigeria’s economic fortunes because of the level of mismanagement in the past and how some governors have mortgage the future of their states through foreign and domestic loans which incumbent administrations are battling to settle. The consequences of this is that some governors due to the reduction in their state’s monthly federation account allocation, poor Internally Generated Revenue (IGR), foreign and local loans and lack of prudent management of resources are finding it very difficult to pay salaries. The economic downturn has weighed down many state governments and governors in their quest to provide good governance and basic need to the people. They are in dire financial straits. As at today, about 19 states have backlog of salaries ranging from two months to nine months despite receiving bailout fund from the federal government. On September 18, 2015, the Central Bank of Nigeria (CBN) through its spokesman, Ibrahim Mu’azu, released the list of 19 states that benefited from the workers’ salary bailout package which was in line with the resolution by the National Economic Council (NEC). According to Mu’azu, the bailout was to ensure that the backlogs of salaries owed by the affected states are cleared and he revealed that the package has 20-year repayment tenure for all states with the exception of Ogun State which opted for 10 years repayment tenure. The states that received the bailout were Kwara, Zamfara, Osun, Niger, Bauchi, Gombe, Abia, Adamawa, Ondo, Kebbi, Ekiti, Imo, Ebonyi, Ogun, Plateau, Nassarawa, Sokoto, Edo and Oyo. According to the CBN, the amount received by the states are: Abia (N14.152bn), Adamawa (N2.378bn), Bauchi (N8.60bn), Bayelsa (N12.85bn), Benue (N28.013bn), Borno (N7.680bn), Cross River (N7.856bn), Delta (N10.036bn), Ebonyi (N4.063bn), Edo (N3.167bn), Ekiti (N9.604bn), Enugu (N4.207bn), Gombe (N16.459bn), Imo
Udom…spending wisely
(N26.806bn), Kastina (N3.304bn), Kebbi (N0.690bn), Kogi (N50.842bn) and Kwara (N4.320bn) Others are: Nasarawa (N8.317bn), Niger (N4.306bn), Ogun (N19.00bn), Ondo
Speaking on why he rejected the bailout fund which some governors accepted passionately and joyfully to address their economic challenges, Udom during a town hall meeting with stakeholders in Uyo, said he refused to accept the bailout fund offered to states by the federal government because he did not want to mortgage the future of the Akwa Ibom people. He explained that he would not borrow money he does not need and by so doing, leave a huge debt burden for future governors to pay
(N14.686bn), Osun (N34.988bn), Oyo (N26.606bn), Plateau (N5.357bn), Sokoto (N10.093bn) and Zamfara (N10.02bn) The release of the federal government loan was commended by many people with the hope that it will assist state governments in settling their backlogs of salaries, but surprisingly many governors allegedly diverted the money and used it for other purposes different from what the bailout was meant for. Some governors used the loan for projects and while others used it to meet other government capital and recurrent expenses; that as at today, some of the states are back to the same spot they were last year and they are looking up again to the federal government for another bail out to settle backlog of salaries. But Governor Udom, one of the few governors that do pay salaries as at when due without owing civil servants in his state refused to take the loan. He avoided mortgaging the future of his state to loans and through collection of the bailout because there was no need for it, having managed the resources of Akwa Ibom State wisely and prudently to meet the yearnings and aspirations of the people of the state. Today, irrespective of the financial hardship being faced by governors, Udom, a reputable banker, seasoned administrator, chartered accountant and management expert before venturing into politics, stands tall among his peers and the people of Akwa Ibom State are solidly behind him because of his remarkable performance and wise financial
decision. Speaking on why he rejected the bailout fund which some governors accepted passionately and joyfully to address their economic challenges, Udom during a town hall meeting with stakeholders in Uyo, said he refused to accept the bailout fund offered to states by the federal government because he did not want to mortgage the future of the Akwa Ibom people. He explained that he would not borrow as he does not see any need for it and by so doing, leave a huge debt burden for future governors to pay. Without mincing words, his decision on the bailout fund is a wise decision considering that many of the incumbent governors are facing serious challenges in fulfilling their campaign promises and prompt payment of salaries because of the huge debt portfolio they inherited from their predecessors. As at today, many state governments are using about 60 to 70 per cent of their allocations and IGR to service loans that previous administrations subjected them to. Udom has maintained that he is passionate about the development of Akwa Ibom and the people, disclosing that he resigned from a flourishing banking career where he was a director and had a top management position to become the Secretary to Akwa Ibom State Government in July 2013. His passion for service and commitment to the growth and development of Akwa Ibom made the then governor and now senator, Chief Godswill Akpabio to back him for the CONT’D ON NEXT PAGE
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T H I S D AY • WEDNESDAY, MAY 25, 2016
ENCOUNTER
MIDWEEKPOLITICS
Moro’s Passionate Plea for Peace in PDP
Shortly before the parallel convention of the Peoples Democratic Party, former Minister of Interior, Abba Moro, pleaded with members of his party on the need to stay as one. Yekini Jimoh reports
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uring a chanced meeting with former Minister of Interior, Comrade Abba Moro the Peoples Democratic Party stalwart expressed deep concern about the future of the party. He was particularly bothered about the implication of creating factions in the party. For Moro, rather than deplete the party further by factionalising it, the only chance of survival of the party after the loss of its grip on power at the centre in the 2015 general elections is for members to remain united and pursue a common goal. A staunch member of PDP, Moro made the call ahead of the parallel national conventions, reiterating his call for a truce in the ongoing crisis tearing the party apart, maintaining that “The creation of factions will not augur well for the continued existence of the PDP.” According to him, “The only therapy needed to heal the injuries sustained from the terrible blow of defeat in last year’s election by the party to enable it bounce back to power in 2019 is absolute unity among members at all levels. “The emerging factions in the party are utterly needless. What we need now is to come together and share ideas on how to rebuild and reposition our party for effective performance in future elections. “By now we ought to have learnt some very useful lessons from our past mistakes that
brought us down in the 2015 polls. We need to know that there is no way we can survive amidst crisis and turbulence as a party aiming to return to power. “Our road to victory in 2019 can only remain smooth if we choose to work together devoid of acrimony.” He said the proponents of the parallel convention from the one approved by the National Executive Committee (NEC), the highest decision-making organ of the PDP, needed to have a rethink and embrace dialogue in the interest of the party. “Attempting to divide the party on the excuse of opposition to the leadership of Senator Ali Modu Sheriff is overtly unpatriotic and uncalled-for. The PDP is certainly larger than anyone individual. And for some of the founding fathers of the PDP, it will be an unforgiveable mistake for them to tear down the house they toiled so hard to build. This is the time to build bridges of accommodation rather than fan the embers of the things that divide us,” he added. But eventually, though the PDP NEC ratified the last Saturday, May 21, 2016 national convention in Port-Harcourt to elect new national officers for the party, some elders and stakeholders (mostly founding members) firmly opposed to the leadership of Ali Modu Sheriff as the national chairman equally held a parallel convention on the same day in Abuja.
Moro…pleading for oneness in the PDP
F R U G A L U D O M S AV E S A K WA I B O M F R O M I N D E B T E D N E S S number one position in the state. He defeated 22 other aspirants to emerge as the governorship flag bearer of the Peoples Democratic Party (PDP) and defeated his closet rival and his predecessor as secretary to the state government, Umana Okon Umana, who contested the April 11 gubernatorial election on the platform of the All Progressives Congress (APC). Since his swearing-in on May 29, 2015, he has not relented in delivering dividends of democracy to Akwa Ibom people and the future of the state is paramount to him in any decision or policy he makes about the affairs of the state. During his inaugural address on May 29, 2015, Udom promised pursuit of a greater Akwa Ibom State. “I place a demand on all Akwa Ibom people, at home and abroad, to come with hoes and shovels, and let us bury the twin evils of ethnicity and tribalism, which could slow us down in the race of development. “At the same time let us sow the seeds of brotherhood, love and unity, which will energise us to maintain our current momentum and leadership position. Let us remember that with the spirit of brotherhood, love and unity, no foe can defeat us, and no rival can overtake us. “My dear compatriots, our Heavenly Father, history and posterity will not forgive our generation if we fail to continue the search for a better estate and pursuit of a greater Akwa Ibom State. “This search we anchor on the timeless promise that whoever asks shall receive, whoever seeks shall find and who ever knock, the door shall be opened unto him. This promise is therefore God-given, and it is large enough to shelter every boy and girl, man and woman, young and old from the scorching heat of injustice. “As we seek to build a greater state founded
on prosperity and justice, we should be reminded that in this Land of Promise, God will surely honour His own,” he promised. Committing himself to the growth and development of Akwa Ibom State, Udom promised to keep his covenant with the people of the state by executing the programmes he enunciated during his official declaration to run for the office of governor. “I stand before you today not as a master but as a servant and not as a boss but as a co-labourer. I accept, with great humility and sense of responsibility, the mandate you have freely given to me to hold power in trust for you are your Governor. You have kept your part of the covenant and I intend to keep my part by executing the programmes I enunciated to you during my official declaration to run for the office of Governor. These include: “To leverage and build on the uncommon transformation of the Governor Godswill Obot Akpabio administration; to transform the economy of our state via industrialisation and sustained public-private sector initiative, thereby opening up opportunities for growth and improved living standards; to respect and uphold the tenets of democratic governance which our great party (PDP) unflinchingly stands for, as well as respect the party’s structure, decisions and hierarchy and to ensure the security of lives and property of the people at all times, while adhering to the principal of the rule of law, thereby ensuring equity, justice and fair play. “Others are; to promote unity and oneness across the state, with due respect for traditional institutions and the elders of our society; to continuously develop, mobilise and empower our women and the youths via planned and well-articulated welfare and capacity-building programmes; to give all Akwa Ibom persons (both within Nigeria and the Diaspora) a proud sense
of belonging-built on good governance, economic advancement and due respect for the Fundamental Human Rights of all; to pursue the task of rural development and integration with all vigour, bring the benefits and dividends of our democratic governance to every nook and cranny in the state, and provide basic amenities of life to all and to ensure accountability and transparency in government by fighting and tackling corruption in all facets of our administration. “Our government also promises to provide trade, commerce and tourism between Akwa Ibom and the rest of Nigeria, and in fact, the rest of the world; to foster, develop, and maintain a good working relationship with both the legislative and the Judiciary arms of Government in the state, as well as ensuring an effective local government administration for grassroots development, mobilisation and empowerment and to attract all possibly required Federal presence to Akwa Ibom State, by developing and sustaining a harmonious and very cordial relationship with the government at the centre. “These are the milestones we have set for our democratic journey under my stewardship. We invite all of you to think of what you can do for our State to achieve these milestones, and not what our state can do for you. We urge you to keep this administration in your thoughts and prayers. We will gladly welcome your ideas and contributions. “We will accept your constructive and open-minded criticisms. Akwa Ibom State belongs to all of us, and it is only in the development of this State that we can attain our individual goals and aspirations,” he said. The policy thrust of the Udom-led administration in Akwa Ibom State is to provide adequate infrastructure that would affect the lives of its citizenry and attract Investors to the state. And without any iota of doubt, the
governor through the Ministry of Works has done tremendously well in execution of its mandate in the areas of roads construction and maintenance, bridges construction and rehabilitation, electrification and fire services. Some of the laudable projects of the administration are: emergency intervention on gully erosion ravaging along Calabar-Itu road at Enen Atai, Itu local government area by direct labour; emergency intervention on gully erosion ravaging the school of Nursing, Anua, Uyo by direct labour; construction of 3.5km Ikot Udom road with 15m span bridges in Ibiono Ibom local government area; construction of 5km Ikot Usop-Ikot Edeghe-Ikot Ekpuk road with 30m span bridges in Mkpat Enin local governmentaArea; construction of the 5km-Mkpok-OkaT road in Onna local government area and emergency works in the completion of outfall and urban roads in Oron. Others are reconstruction of knocked down 33kv Inter-Town connection (ITC) to Oron at Ifa Atai, maintenance and operation of street lights in Uyo, Abak, Ikot Ekpene and Oron metropolis; dualisation of UyoEtinan road; construction and re-modelling of selected roads, strategic round-about and junctions in Eket metropolis (Phases I & II); construction of internal roads in Cornelia Connelly College (CCC)- Afaha Oku-Uyo; construction of Etinan-Ekpene Obom (QIC Leprosy Hospital Road) and construction and dualisation of Etinan-Onna road with two bridges. However, as Udom celebrates his first year in office, one thing the people of Akwa Ibom are commending him for, was his decision not to mortgage the future of the state by not requesting for the bailout fund because if he had joined other governors in collecting the bailout, the debt would have been on the state.
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T H I S D AY • WEDNESDAY, MAY 25, 2016
PERSPECTIVE
MIDWEEKPOLITICS
How to Create One Million Jobs Protecting National Assets Considering the need for security in Nigeria, Magnus Onyibe suggests that many unemployed youths can be productively engaged providing security in the country
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hese are perilous times for President Muhamadu Buhari and the 36 state governors in Nigeria. In fact some would argue that this is not a good time to be president or governor
in Nigeria. Already, about twenty seven, 27 of the states are said to be so insolvent, the governors are unable to pay civil servants their monthly emoluments without assistance from the federal government. This coupled with the resurgent militants destroying oil production and transportation facilities linking export terminal operated by Shell and a rig owned by Chevron- twice in two weeks, there is an estimated loss of 300,000 barrels of oil per day, due to the damaged oil infrastructure and reduced monthly revenue allocation from the Federation Account (FAAC). With two major oil facilities damaged and volume of oil which Delta State contributes into the national pool now short by at least 300, 000mpd, so the amount received from FAAC by the state will drop further and that implies more financial headaches. In a recent interview with the Chief Executive Officer (CEO) of Shell Petroleum and Development Company (SPDC) in Nigeria, Osagie Osunbor, he revealed that in 2014, theft of crude oil from SPDC pipelines was 37,000 barrel per day. It dropped to 25,000 in 2015, in part due to sale of some of the facilities to indigenous investors and the SPDC boss further disclosed that the number of attacks also dropped from 139 in 2014 to 93 in 2015, but nonetheless, theft and sabotage still constitute about 85% of spills from SPDC pipelines. Ibe Kachikwu, Petroleum minister of state, who also doubles as Group Managing Director of the NNPC, reckons that the losses are more as he insists that Nigeria’s oil production is down by about 40 per cent due to renewed militancy in the Niger Delta. When you add the debilitating effects of such horrendous vandalism induced losses to the tumbling crude oil price in the international market, then you can vividly see the reason there is palpable apprehension about the looming insurgency of militants that could further exacerbate an already complex and precarious situation in the Niger Delta zones in particular and which is bad news for Nigerians as a whole. Viewed from the prism of the colossal amount of money and lives lost to vandalism and related activities catalogued above, it goes without saying that government should seek for enduring ways and means of protecting critical national assets such as the ones identified as being under threat. Already, President Buhari and Vice President Yemi Osinbajo, in the course of their campaign for office last year, promised that the federal government would recruit 500, 000 unemployed graduates into the teaching profession to create employment and also boost education, which is good but there is another opportunity to create 1, 000, 000 jobs for youths through the establishment of Critical National Asset Protection Corps. To start with, there are several youthcentric outfits such as the National Youth Service Corp (NYSC) set up as far back in 1978, as a national integration forum for Nigerian youths. There is also the National Security and Civil Defense Corp (NSCDC), a paramilitary agency set up to ensure public order, just as there is Federal Road Safety Corps (FRSC) focused on safety on Nigerian roads. So, there already exists a blue print for setting up a youth focused organisation and the requisite experience abounds for its operation. Considering that a recent advertisement for application into the Nigeria Police Force (NPF) attracted about one million youths even though only a few thousands were needed, the importance of creating more platforms to harness the productivity of these apparently idle but virile young men
Minister of Labour and Creativity, Chris Ngige…an urgent need to empower Nigerian youths
and women in their prime, for the growth and development of Nigeria cannot be over emphasised. More so, as they will be performing a fundamental task of filling the security gap which the lack of existing plans for the protection of critical national assets created, hence they have been unduly exposed to vandalism. A couple of years ago, an advertisement by the Nigerian Immigration Service (NIS), inviting youths for employment also attracted a record number, but due to lack of effective crowd control strategies, some of the youths who turned up in droves, were unfortunately trampled to death during stampede. What the scenarios described above imply is that there already exists a workforce with latent energy waiting to be harnessed as veritable human resources for the proposed Critical National Assets Protection Corp
Buhari has got to show as a president from the North that he is not ignoring the Niger Delta, that he is engaging the challenges in the delta. With 70 per cent cut in the budget for militants training in 2016 appropriation bill, Mr. Hammond believes the militants have legitimate concerns that need to be resolved amicably, as opposed to the military action being contemplated
(CNAPC). Apart from the fact that youths abound, there is also a huge reservoir of men and women with military experience waiting to impart the knowledge to a new crop. This is because over the past few years, the Nigerian military has spent huge money training members of the armed and other security forces at home and abroad. Though owing to coups and counter coups, which were common at the nascent stage of Nigeria’s development, most of the military men trained in prestigious institutions in the United States of America (USA), Europe, India and other parts of the world retired prematurely from service but their useful trainings in security matters qualifies them as veritable pool of potential human resources developments that could drive the CNAPC initiative. It goes without saying that corps member would only supervise licensed private security firms to be sourced from the various communities where the assets are located. That way there will be a sense of ownership by the community and the current concept of relying on vigilante rag tag army would be eliminated. Ideally, at this level of our development as a nation, there is no need for vigilante groups like Civilian Joint Task Force (JTF) in the North, Odua Peoples’ Congress (OPC) in the South-west and now Bakasi boys who just been resuscitated in the South-east, but in the absence of adequate protection by the military and police, citizens are left with no other option than to rely on such ad hoc measures which is like what obtained in the USA before it became a confederation. As they say, necessity is the mother of invention, so make no mistake about it, what is being proposed is not a novelty. Before the development of the USA into federations of states, each state had their own militia for protection because there was no common army. That’s the origin of the freedom to bear arms-Stand Your Ground-
policy by members of American societies who needed to protect their communities from outlaws like slave raiders and red Indians whom foreign invaders mainly from Europe had displaced from their land. The beauty of this proposal is that its two for the price of one because not only would government be providing one million five hundred thousand jobs for the youths, instead of just five hundred thousand initially being proposed for recruitment as teachers, the nation’s critical assets, now susceptible to vandalism, would also be best safeguarded. It is now left to the authorities to seize the opportunity to think and act out of the box in creating jobs for the burgeoning number of unemployed youths in Nigeria. However, no matter how lofty the concept proposed above is, it cannot happen except there is relative peace in the Niger Delta and North-east Nigeria which are currently boiling with violence. Government has responded by threatening to unleash military force on Niger Delta militants, similar to what was applied against Boko Haram terrorists in the North-east. Philip Hammond, British minister in charge of African affairs, on the sidelines of regional security meetings in Abuja last week, urged president Buhari to address the grievances of Niger Delta militants in a more holistic manner. He said: “Buhari has got to show as a president from the North that he is not ignoring the Niger Delta, that he is engaging the challenges in the delta. With 70 per cent cut in the budget for militants training in 2016 appropriation bill, Mr. Hammond believes the militants have legitimate concerns that need to be resolved amicably, as opposed to the military action being contemplated. The fiery Muslim cleric, Sheik Gumi in a recent media interview, has also, weighed in with his admonition: “How can they deal with militants in the first place, when they are holding the nation’s umbilical cord? You are fighting Boko Haram in the North, and you want to fight militants in creeks; you don’t fight on two fronts at the same time. That was one of the reasons why Adolf Hitler failed in in the Second World War. And l dare add, the reason George Bush and the GOP also lost power to the Democrats in the USA. Sheik Gumi concluded that “The government should sit down with them (militants) and ask them the reasons for their agitation.” Allocation of some oil wells to state governments and indigenes of the Niger Delta, is for instance, one of the demands, which l believe authorities may not be averse to, if properly structured. All the perspectives captured above boil down to government’s inability to sort out the genuine grievances in a multi-ethnic and multi-religious country. This is why we seem to be going round and round in vicious circles trading crime and violence based on colorations of whoever is president in Nigeria. Hence when a Southerner is occupying Aso Rock, the North antagonises and when a Northerner is at the helm of affairs, the South takes it as a job to rankle the leadership. What is therefore required to avoid the looming human catastrophe and economic paralysis is a combination of both diplomacy and security enforcement to restore peace in the Niger Delta and the North-east Nigeria and thus particularly save Nigeria the imminent calamity of vandalisation of crude oil infrastructure that would compel cessation of crude oil export. The ball is now in government’s court. Magnus Onyibe, a development strategist and Futurologist, wrote from the United States
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WEDNESDAY, MAY 25, 2016 • T H I S D AY
FEATURES
Acting Features Editor Charles Ajunwa Email charles.ajunwa@thisdaylive.com
The Ever Present Naira Rain Every other weekend thousands of naira notes are ‘sprayed’ at social events and parties, especially weddings. This is one aspect of Nigerian culture that has refused to wane despite the current economic climate, writes Chineme Okafor
Money spraying at parties
S
ocial events or parties in Nigerian society differ greatly between urban and rural areas, across ethnic and religious borders, and with levels of financial means, but there is always a common factor that defines all of the celebrations you see across the country – ‘money spraying’. ‘Spraying’ of naira notes at social parties, usually with so much vibrancy and at intervals are often seen in few quarters as outward display of affluence at parties and widely acknowledged in most others as a necessary act that complements certain parties or social events. No matter the level of education or economic circumstance, celebrants at social events in Nigeria will often go home with bags of naira notes sprayed on them by invitees and friends. This according to those who indulge in it is usually a sort of an attempt to help celebrants recover bits of their expenditure for hosting the parties. And as a social norm that has lived for long now, it is almost impossible to attend wedding, burial, baby christening and even housewarming ceremonies in any part of Nigeria without seeing the dance floors littered with very clean and crisp naira notes. These naira notes are monies sprayed to celebrants mostly as they dance to the entertainment and pleasure of their invited friends. Also as a practice, there are select people to pick up the naira notes for keeps for the beneficiaries and to make it quite easier, they occasionally exchange lower denominations for higher denominations with invitees to allow them to go on with the spraying spree. However, there are also real people who specialise in exchanging various naira denominations for people but usually at a slight premium. They are often called ‘money changers’ which if translated literally in the local Yoruba parlance, they could be
precious ajuebor
called ‘ase owo’. These people also loiter around at parties waving their clean crispy naira notes to invite potential party sprayers. THISDAY recently opted to check out the dynamism of this practice in this period of dire economic hardship in Nigeria, to discover that irrespective of the current economic conditions in the country, citizens still find it obligatory to spray the naira at parties. “Most Nigerians still share a strong attachment to family and especially when families have reasons to celebrate,” Olajumoke told THISDAY in Abuja. Clad in a traditional styled white lace blouse and wrapper, with a matching blue headgear, Olajumoke was attending a wedding party of a young couple in one of the highbrow event centres located in the central business area of Abuja, she made efforts to justify why she had to spray wades of
No matter the level of education or economic circumstance, celebrants at social events in Nigeria will often go home with bags of naira notes sprayed on them by invitees and friends. This according to those who indulge in it is usually a sort of an attempt to help celebrants recover bits of their expenditure for hosting the parties
naira notes to the newly wed irrespective of seeming complaints of hard times in the country. “Clearly, we understand there is no money in the country, we also know that people are complaining that it is really tough these days but you can’t just attend a wedding party with no gift for the newly wed or even appreciate their efforts with few naira notes that you spray on them when they dance,” said Olajumoke. She further stated: “When you spray the couple, you are not showing off or saying that you have excess money to waste, but you are telling them that you really appreciate their efforts at putting the party together. “You are also in some way, trying to contribute something to make their first few days or months as a couple a little less difficult. Remember these people had spent money they saved to put up the wedding party, it is just in us to help them stand on their feet again as a new couple.” Olajumoke noted that while social structures, and certain dominant factors like religion have helped shape the practice of spraying monies at social gathering or events in Nigeria, the fact remains that it is a societal practice that has gained diverse community supports. She explained that social life in Nigeria has traditionally revolved around ceremonies such as weddings, christening and public performances, but added that they are all associated with the cultural practice of spraying monies irrespective of the economic condition. “Forget the economy and the hardships, naira notes are still sprayed at parties,” Olajumoke quipped. “How can you come to a party and you look at the celebrant to tell him, ‘the country is hard, I don’t have money to spray you,’ you have to try no matter how small,” she added. Similarly, in a friendly exchange with
Bose who was seen at the same party that Olajumoke attended, though she was there for a different undertaking, it was realised that even though ‘money spraying’ at social events was still a very lively practice, the volume of monies found on dance floors these days has however dropped. As a money changer who had come to do her business, Bose told THISDAY that she still made sales but on a very low scale now. She noted that her business is uniquely affected by both the country’s economic crunch, and shortage of social parties in Abuja. According to her, she only relies on such social events like weddings and open birthday parties to make sales in the city but not burials. “Nobody holds burial ceremonies where you can sell mint in Abuja here. Abuja is not a very socially exciting city. People here will only do their birthdays and weddings but not burials. “They will take the burials to their hometowns to celebrate. That way, I rely mostly on just weddings to change monies. But now that the country is hard, the volume of sales has also dropped,” Bose said. Notwithstanding the present economic hardship, further thoughts gathered on the status of this practice from Nigerians in Enugu, Lagos, Ibadan and Ago Iwoye indicated that naira notes still rain at parties across the country in defiance of the country’s present day condition. So, when next you attend any social party, either wedding; burial ceremony or housewarming; maybe even the christening of a new baby, just look out on the dance floor, you may be able to observe how defiant ‘money spraying’ has become regardless of the difficult economic conditions in Nigeria. This longstanding cultural exercise has simply refused to be cowed off the social stage or arena.
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WEDNESDAY, MAY 25, 2016 • T H I S D AY
PERSPECTIVE
Tompolo of Niger Delta: Between Dialogue and Confrontation Yushau A. Shuaib “NEMA Registers 3500 Displaced People in Warri” The above quotation was the title of a press release I issued as the spokesperson of the National Emergency Management Agency (NEMA) on June 25, 2009 after the completion of our assignment in setting up Internally Displaced Person’s (IDPs) camp in Gbaramatu Kingdom, Warri South West, Delta State. The NEMA’s intervention followed a clash between the military-led Joint Task Force (JTF) and Tompolo-led Movement for the Emancipation of the Niger Delta (MEND) which had claimed responsibility for the deaths of some soldiers and displacements of citizens. Even though the military endorsed our passage to the creek in May 2009, some of us were scared stiff of the possibility of being captured by militants on a suspicion of being government’s spies. Surprisingly we were well-received by community leaders and local government council officials which was then under the Chairmanship of younger brother to Government Tompolo, the most wanted Militant Leader. To our amazement, we discovered some Hausa-Fulani folks within the hinterland who had adopted Ijaw-land as home away from home, speaking the local dialect fluently and even enjoying the locally brewed gin! It was a scary adventure for NEMA responders as we persuaded women and children to come out from their hideouts in the bush. Their plights were better imagined as we had to close down some schools and health centres and converted them to IDP camps. Some pregnant women delivered babies in the thick forest; their men languished in the bush and stayed on water as thousands other displaced persons had scattered into the neighbouring states of Bayelsa, Edo, Ondo and Rivers. While the Nigerian troops were still hunting for the militants, NEMA’s reports and intelligent information from other sources, persuaded the peace-loving President Umaru Musa Yar’Adua, a Muslim Northerner from Katsina State to endorse the Amnesty Agreement. The elusive Tompolo and other ex-militant leaders emerged from their hideouts and agreed tothe Amnesty programmes in the Presidential Villa as they surrendered their sophisticated weapons and were eventually pardoned by Yar’Adua’s government. The risky decision of President Yar’Adua in embracing dialogues and approving the Amnesty for the Niger Delta militants rather than confrontation through military might, quickly stabilised the region, boosted the volume of crude oil production, steadied supply of gas to electricity power stations, increased revenue to the Federation Account and ensured engagement of many youths of that region in various productive ventures including capacity building programmes at home and abroad. Precisely seven years after, we are back to the old story as militants have staged a resurgence of hostilities through a new group, Niger Delta Avengers (NDA) which is attracting global media attention by destructions of oil facilities in the region. This unfortunate development is coming at a period when Nigerian troops are contending with Boko Haram menace in the North-east. The activities of NDA and other similar groups are reminiscence of Pre-Yar’Adua’s Amnesty when the militants engaged in abductions of oil workers, especially the
Tompolo...calling for peace in the Niger Delta region
expatriates; rampant sea-piracy; destructions of oil facilities and killing of ordinary citizens and security personnel. There are concerns expressed by some ex-militants that the Amnesty Programme may soon be jettisoned by Buhari’s administration as the Coordinator of the Presidential Amnesty Programme, Brig. Gen Paul Boroh (rtd), recently disclosed that the programme is very expensive and cannot be sustained in perpetuity. Coupled with that fear are the unfounded allegations that the current administration is after ex-militant leaders who supported Goodluck Jonathan in the last presidential election. Some are even claiming that the prosecution of Tompolo by Economic and Financial Crimes Commission (EFCC) over corrupt practices is political witch-hunting. There are certainly those that are not comfortable with military threats to ‘crush’ NigerDelta militants like Boko Haram Terrorists considering the fact that Nigerian troops are already overstretched as they engage in war on terror in the North-east. The Niger Delta creek is also precariously impenetrable terrain. Such threats, according to some critics, portray the government as adopting confrontational stance rather than diplomatic approach at addressing the youth restiveness. In the face of military threats to crush
the vandals, it is the unidentified militants that are currently ‘crushing’ and crippling Nigeria’s economy through the destructions of oil installations that provide gas for domestic power generation and crude oil for export. For instance, after the attack on the Nigeria Gas Company's pipeline in January 2016, the Minister of Power, Works and Housing, Babatunde Raji Fashola announced that the country was losing N470m daily. On the other hand, the Minister of State for Petroleum and Managing Director of NNPC, Dr. Ibe Kachikwu, also disclosed that Nigeria losses 800,000 barrels ofcrude oil daily due to pipeline vandalism which easily translates to the revenue loss of over N7bn daily. And just recently the Ad-hoc Committee on Crude Oil Theft Prevention and Control of the National Economic Council (NEC) ) revealed that the Federal Government does not have adequate operational vessels to patrol and secure the network of pipelines in the Niger Delta. While we must condemn the destruction of oil facilities by the Niger Delta militants, the government should tread a political line through dialogues. President Buhari should ignore any misleading advice as some zealots would rather want our President to act like a no-nonsense cowboy in Hollywood movies. At over 70 years, President Buhari does not have
that youthful strength and excessive power of military dictatorship to re-enact forceful compliance to orders because of democratic ethos. As the father of the nation, Buhari should employ humane and thoughtful strategies that would not exacerbate the already tense political and economic situations in the country. He should demonstrate exemplary leadership qualities through compassionate disposition and diplomatic overtures to the belligerent militants whose sponsors are yet to be identified. Since the most wanted Niger Delta militant, Government Tompolo, has issued Open Letters, appealing to President Muhammadu Buhari to intervene on his plight, the government should temper justice with mercy and capitalise on that and woo other leaders in the region for amicable solutions to the crises. After fruitful dialogues government should work out concrete structures that would permanently address the plight of people whose environment provides the chunk of our national revenue. The government should also pursue aggressive economic diversification programmes for other geopolitical zones towards economic self-reliant and sustenance. •Shuaib, an author and public relations practitioner, wrote from Abuja
22
IMAGES
The new Abia State Peoples Democratic Party (PDP) Chairman, Mr. Johnson Onuigbo (left), and the new chairman, Senator Emma Nwaka, during the handover ceremony at the party’s secretariat in Umuahia… recently.
L-R: Speaker at Excellence in Life (EIL) Series 2.0 and founder/CEO, Healthplus Pharmacy, Bukky George; EIL Series convener, Dr Femi Paul; and his wife, Helen, during the EIL Series 2.0 themed ‘Breaking New Grounds’ in Lagos…recently
L-R: Project Facilitator & Co-Founder, Lighthouse Network, Mrs. Nkiru Olumide-Ojo; Certified Leadership Instructor and Life Coach, Ephraim Osunde; Founder, Bring Back Our Girls & Chief of Staff to Kaduna state governor, Hadiza Bala Usman; and CEO, Make It Happen Productions, Kemi Akindoju; at the 3rd edition of personal development conference organized by Lighthouse Network in Lagos...recently
T H I S D AY • WEDNESDAY, MAY 25, 2016
Photo Editor Abiodun Ajala Email abiodun.ajala@thisdaylive.com
L-R: The immediate past President. ADVAN, Kola Oyeyemi; exco member, Osamede Uwubanmwen; and VicePresident, NIMN, Tony Agenmonmen, at the 2016 ADVAN marketers’ conference at Ikeja, Lagos…recently
L-R: Oyo State Governor Abiola Ajimobi; founder, Access Basic Medical Care Foundation (ABC) and wife of Oyo State governor, Mrs Florence Ajimobi; her Osun and Ekiti State counterparts, Mrs Sherifat Aregbesola and Mrs Feyisetan Fayose; and a representative of UNFPA, Mr Osaretin Adonni, during a meeting on female genital mutilation in Ibadan…recently. Felix Ademola
L-R; The Legal, Public Affairs and Communications Director, Nigerian Bottling Company Limited. Mrs. Folasade Morgan; Chairman, Commerce and Industry Correspondent Association of Nigeria (CICAN), Mr. Toba Agboola; and Corporate Communications Manager, Nigerian Bottling Company Limited, Mr. Akomen Omijeh, during a courtesy visit to NBC by CICAN in Lagos....recently
The immediate past chairman, Association of Professional Women Engineers of Nigeria (APWEN), Lagos chapter, Mrs Nimotalai Muili; the newly elected Chairman, Mrs Angelique Ikwuka; and the National Head, Media and Publicity, the Redeemed Christian Church of God (RCCG), Council of Elders, Pastor Ayodeji President, Mrs Hauwa Muhammed Sodique, during the inauguration of the sixth chairman of the Lagos Olulami; Vice-President, Pastor Obadiah Mulero; and the Chairman, Pastor Israel Abatan, during a press branch of the association in Lagos…recently briefing on the forthcoming National Elders conference and praise night in Gbagada, Lagos…recently
23
T H I S D AY • WEDNESDAY, MAY 28, 2016
BUSINESSWORLD NIBOR PRIME 1-MONTH
R A T E S
A S
LOAN
3-MONTH
4.4583% 9.1071%
3-MONTH
11.0102% 12.3790%
NITTY 1-MONTH 2-MONTH 3-MONTH
A T
Group Business Editor Chika Amanze-Nwachuku Email chika.amanzenwachukwu@thisdaylive.com 08033294157
M A Y 2 0 , 6.9949% 7.2368% 8.0819%
1-MONTH 9-MONTH 12-MONTH
2 0 1 6
9.2061% 9.5872% 10.5042%
EXCHANGE RATE N197/1US DOLLAR* *AS AT LAST FRIDAY
Quick Takes MAN Launches Large Corporation Group
OPEN FOR BUSINESS
L-R: District Head of Gwale and representative of Emir of Kano; Alh. Yahya Inuwa Abbas; President \ Chief Executive Dangote Group, Aliko Dangote; Chiarman, Dangote Flour Mills Plc , Ighodalo Asue, at the official re-opening of Dangote Flour Mills in Kano...recently
CAR: CBN Extends Deadline for Systemically Important Banks Obinna Chima The Central Bank of Nigeria (CBN) has extended the deadline for the implementation of higher capital adequacy ratio (CAR) requirements for systemically important banks (SIBs), a report has shown. The policy, which was to take effect from July 1, 2016, but has been deferred to an undisclosed date, stipulates the implementation of 16 per cent minimum CAR for SIBs. The SIBs are First Bank of Nigeria Limited, Guaranty Trust Bank Plc (GTBank), Zenith Bank Plc, United Bank for Africa Plc (UBA),
ECONOMY Access Bank Plc, Skye Bank Plc, Ecobank Nigeria and Diamond Bank Plc. The eight financial institutions designated as SIBs by the central bank were required to hold more liquid assets and a liquidity ratio of 35 per cent. This meant the affected banks were expected to have a minimum liquidity ratio, which is five per cent above the 30 per cent requirement in the industry. “We gathered from our meetings that implementation of the 16 per cent minimum CAR for systemically important
banks, scheduled to take effect from 1 July 2016, is likely to be delayed. We view this positively given the difficulties in boosting capitalisation levels in this environment. “That said the CBN on 14 March, tightened CAR requirements – all intragroup placements will be assigned a minimum risk weight of 100 per cent from 20 per cent owing to perceived risks from such exposures,” the report by Renaissance Capital stated. In addition, the report showed that on-going forex shortages have deteriorated over the past few months with the banks still estimating
a win-ratio of forex bids at 7-10 per cent. Despite the adjustment of petrol prices to reflect a NGN285/$1 exchange rate, the firm held the opinion that petrol scarcity issues are likely to continue as international oil companies (IoCs) are mostly not selling forex directly to the marketers, saying that “even if they were, forex supply gaps remain material.” It also revealed that the CBN has given approval to Moneygram to execute inflow conversions and outflows at N240-264/$1. The move, it Continued on page 24
NASD OTC Eyes Firms Delisted from Nigerian Stock Exchange Goddy Egene The management of NASD Plc is making moves to get the eight companies delisted from the Nigerian Stock Exchange (NSE) last week to trade on the over-the-counter (OTC) market. NASD Plc is the platform for the securities of all unquoted public companies in Nigeria. The platform, which commenced operations in 2013, has admitted 27 firms with efforts being made to attract more. However, THISDAY checks revealed that NASD Plc is making moves to attract the eight companies delisted by NSE. The companies include: IPWA Plc, G. Cappa Plc, West African Glass Industries Plc,
CAPITAL MARKET Investment & Allied Insurance Plc, Alumaco Plc, Jos International Breweries Plc, Adswitch Plc and Rokanna Plc. The stocks were delisted for failure to comply with listing requirements. It was gathered that NASD Plc sees some of the companies a very good candidates for the platform given the experience they have already had on the NSE. “These companies have already been exposed to the requirements of an exchange and they have been on the NSE for many years before now. However, due to one challenge or other they could no longer meet the listing requirements. But that does not
mean the companies cannot recover. Having been delisted from the NSE, they can be traded on the NASD Plc so that any of their investors wanting to exit can do that. Also, other investors who still have confidence in their future can enter,” a market source told THISHDAY on Monday. The source added that it would be in the interest of NASD Plc, the companies and investors if the companies would be able to trade on the OTC platform having exited the NSE. “A company that was delisted from NSE, Cappa & D’Alberto now trades on the NASD platform, a development that is good for the market and has created some liquidity for investors. I
am sure with the some of the eight companies could follow the same” the source added. NASD Plc has been eying over 70 public companies that already have their securities registered with the Securities and Exchange Commission (SEC). The Managing Director/ CEO of NASD Plc, Mr. Bola Ajomale, had told THISDAY that efforts were being made to ensure that such public companies that are yet to have their shares traded on the OTC platform are made to do so. According to him, various strategies are being adopted to achieve the listing of these shares so that the companies Continued on page 24
The Manufacturing Association of Nigeria has inaugurated its Large Corporation Group, which will amongst other things come up with policy recommendations that will lead to a conducive economic and social climate for the operation and development for large scale industries in Nigeria. Speaking at the inauguration ceremony, MAN’s President Mr. Frank Udemba, was quoted in a statement as saying one of the most crucial tasks before the Large Corporation Group was the facilitation effective linkage between small/medium scale industries and large scale industries in the production and supply value chain. Udemba said linkage is critical in the task of making Nigeria a manufacturing hub in the sub region and beyond. On her part, the Minister of State for Trade and Industry Hajia Aisha Abubakar said the federal government was committed to creating the enabling environment for manufacturing to thrive in the country, adding that MAN is government’s strategic partner in achieving this task. She said the tough conditions that manufacturer’s face in Nigeria notably inadequate power was a top priority for the present administration. The event was sponsored by global digital industrial technology company – General Electric (GE) which made a presentation on GE’s Gas to Power solutions focusing on the use of LPG as a reliable and available fuel source for power generation. The integrated solution will go a long way in addressing a number of the energy needs of Nigerian manufacturers. During his presentation, Dr. Christoph Reimnitz of GE emphasised the availability of competitively priced LPG via GE’s fuel partner Vitol.
Skye Bank Wins Award
Skye Bank Plc has won the best ‘seamless Post merger and acquisition integration in banking’ award for 2016 on account of its acquisition of Mainstreet Bank in December 2014 and subsequent seamless integration. The bank won the award at the ‘Commerce and Industry Awards’ 2016 organised by the Lagos Chamber of Commerce and Industry at the weekend. Organisers of the award commended the bank for what they described as the ‘seamless post-merger and acquisition integration in banking,’ saying it was a testimonial of its determination to have a broader network and channels that meet the growing financial requirements of its cherished customers. As a result of the acquisition of erstwhile Mainstreet Bank, Skye Bank now has about 400 branches from a couple of branches at inception, in addition to three international subsidiaries in The Gambia, Sierra Leone and Guinea. Receiving the award on behalf of Skye Bank, the Regional Director, Greater Lagos and Ikeja, Mr. Ndubuisi Osakwe, thanked the LCCI for recognising the bank and for taking note of the efficiency which was brought to bear in the acquisition deal. Osakwe assured the members of the public that the bank was poised to deliver better products and services to its ever loyal customers. He said the bank would continue to accord top priority to the satisfaction of its stakeholders.
Orange Initiates Social Venture Prize
Orange has launched a call for candidates for the 2016 Orange Social Venture Prize in Africa and the Middle East. The Orange Social Venture Prize, which aims to encourage start-ups that use innovation to fuel development on the African continent, is being extended to the Middle East and, this year, includes a Special Cultural Content Prize. Applications may be made from 18 May to 21 September 2016 on the EntrepreneurClub.Orange. com website, Orange’s new portal for entrepreneurs in Africa and the Middle East. The projects of 4 start-ups will be recognised during the awards ceremony with prizes of 25,000, 15,000 and 10,000, while 5,000 euros will go to the winner of the Special Cultural Content Prize.
Congress will resume negotiations with government on the hike in electricity tariffs and increase in the pump price of petrol and any other issue that may arise thereof
NLC President Ayuba Wabba
24
T H I S D AY • WEDNESDAY, MAY 28, 2016
BUSINESSWORLD CAR: CBN EXTENDS DEADLINE FOR SYSTEMICALLY IMPORTANT BANKS pointed out fans “the flames of the devaluation debate.” “For the banks the status quo remains until there is guidance from the CBN. What could facilitate supply is a liberalisation of interbank pricing. From a technical perspective, banks’ share prices could rally post devaluation simply on the back of forex inflows; but from a fundamental perspective, we still see this fuelling another round of capital pressure and non-performing loans (NPLs) formation in the sector. “Nigerian forex regulations do not recognise any forex market as ‘secondary market’, which makes it difficult to understand how forex sales at N285 /$1 are supposed to work given that the official and interbank rates remain fixed at N197/$1 and NGN199/$1, respectively, and the parallel market is about N340/$1,” it added. The report revealed that discussions with some banks showed that the CBN was not carried along in the new petrol pricing changes. This, RenCap pointed out did not help, as IoC forex sales are often regulated and currently need to be transacted in a legally recognised market – interbank in this instance. NASD OTC EYES FIRMS DELISTED FROM NIGERIAN STOCK EXCHANGE and their shareholders would enjoy the benefits of patronising NASD Plc. Ajomale had explained that since the platform began operations it had been providing benefits to various stakeholders in the OTC market unlike before. “Our coming has boosted investor confidence by providing transparency in trading of unlisted securities, protecting investors from unregistered middlemen, providing information on liquidity around unlisted securities and improving investor/shareholder relations,” he said.
NEWS
IMF: Fighting Corruption Critical for Growth, Macroeconomic Stability Obinna Chima By vigorously reducing corruption, countries can improve economic stability and boost growth and development, according to a new International Monetary Fund (IMF) staff paper. Public corruption, defined as an abuse of public office for private gain, afflicts economies at all stages of development. Governments around the world face the challenge of addressing citizens’ increased concerns over high corruption as evidenced by recent scandals in many countries. “While the direct economic costs of corruption are well known, the indirect costs may be even more substantial and debilitating, leading to low growth and greater income inequality. Corruption also has a broader corrosive impact on society. It undermines trust in government and erodes the ethical standards of private citizens,” IMF’s Managing Director, Christine Lagarde said. “Given the potential impact of corruption on macroeconomic stability and sustainable economic growth, the IMF has been actively engaged in helping our members design and implement anti-corruption strategies,” she added.Corruption impedes the conduct of budgetary and monetary policy and weakens financial oversight, ultimately
hurting inclusive growth, the paper: “Corruption: Costs and Mitigating Strategies,” released recently stated. The analysis presented in the paper drew on extensive literature on the topic as well as on IMF experience gained in many countries. The paper showed that the topic is “macro-
critical”—that is, critical to the achievement of macroeconomic stability, which is at the core of the IMF’s mandate. While hard to measure properly, the economic costs of corruption could be substantial. A recent estimate put the annual cost of bribery at around $1.5 to $2 trillion (roughly two per cent
of global GDP). The economic and social costs of corruption could potentially be even larger. The paper observed that corruption affects economic development in several ways. First, it weakens the state’s capacity to raise revenue and perform its core functions. By harming the culture of compli-
ance, corruption increases tax evasion. For instance, when tax exemptions are viewed as arbitrary citizens have less incentives to pay taxes. As a result, the state collects less revenue and is unable to provide public services, with potential negative consequences for growth.
OUR SCORECARD
L-R: Company Secretary/Chief Legal Counsel, Ecobank Nigeria, Adenike Laoye; Chairman, John Aboh and Managing Director, Charles Kie, at the bank’s annual general meeting (AGM) in Lagos ...recently
Nigerian MIT Scholar Invents Petrol Stock Monitoring Application Chineme Okafor in Abuja A Nigerian petroleum engineer carrying out research work as a ‘Sloan Fellow’ in the Massachusetts Institute of Technology (MIT), Mr. Onyeizu Chinedu has developed an online real-time application that can identify filling stations or oil marketers that hoard petroleum products. The application can also help the government track and apprehend instances of products diversion, which is the greatest challenge in managing distribution of petrol in Nigeria. According to the MIT, the Sloan fellowship seeks to stimulate fundamental research by early-career scientists and scholars of outstanding promise. The two-year fellowship is awarded yearly to
126 researchers in recognition of distinguished performance and a unique potential to make substantial contributions to their fields. According to Onyeizu, the application, Petrol-Solve 1.3 will also disclose to Nigerians, all the filling stations in the country that procured products from officially-captured supply sources in the country and should be open for business. He stated that through this, the Department of Petroleum Resources (DPR) and other agencies of government could undertake their regulatory tasks with scientific precision. Onyeizu said the application was part of a 3-node model he developed to help the country overcome her present challenges of petrol scarcity which had lasted for long in recent months.
He made this disclosure to reporters recently at a press briefing in Abuja. He explained that the 3-node models would include the unbundling of Nigeria’s downstream oil and gas sector into three strategic nodes of downstream-upstream; downstream-midstream; and downstream-downstream. He said the nodes model would be policy-based and an enabler to having products available in filling stations from which the government and citizens can monitor products movements and stock availability. Onyeizu also noted that his application was completely different from the ‘Project Aquilla’ which the Petroleum Equalisation Fund (PEF) uses to track the movements of trucks bearing petrol
from loading to discharge points, and upon which bridging claims were paid to the truckers. “First, the 3-node model I have developed focuses on leveraging the existing JV and independent partnership agreements that the government has to make refined products available and affordable to Nigerian consumers. “The strategy will require unbundling of the downstream sector into three strategic nodes. The three nodes model is policy based and its critical enablers include locating new refineries at operational bases of oil producing firms, as well as aligning with oil producers to allocate a reasonable quota of crude as constant feed to the refineries,” said Onyeizu. He further said: “The model has a technology application,
Petrol-Solve 1.3 will help capture and transform in context data into actionable insights. It will tell you where fuel is available and the volume and allow the government to make decisions on supply management.” “We are using this technology to introduce real-time monitoring of fuel volumes and for product distribution network management from point of vessel loading to end point,” he added. “The 3-node model approach to solving the fuel crisis in Nigeria will leverage system and predictive analytics to improve management of petrol refining and distribution across the country. It will help the government curb diversion and hoarding which it currently said was its greatest challenges,” he said.
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UPDC Plans Fresh Capital Injection, to Focus on Retail Market Goddy Egene The Chairman of UACN Property Development Company (UPDC) Plc, Mr. Larry Ettah has said that the company plans to inject fresh capital to boost its operations. In his address to shareholders at the company’s annual general meeting (AGM) in Lagos recently, Ettah said the capital injection would be in form of rights issue, disposal of low performing assets and sell down of surplus stake in the real estate investment trust (REIT) among others.
“Our strategy for 2016 and beyond includes deleveraging the business through equity capital injection by way of rights issue, sell down of surplus stake in the REIT and disposal of low-performing assets, as well as leveraging on partnerships and alliances that are in sync with the company’s long term goals,” he said. He added that the company is also recalibrating development towards the retail segment and has put in place strategies to enable it take advantage of emerging opportunities in the segment.
According to him, despite the slow-down in the luxury segment, the Nigerian real estate market remained attractive as there were significant untapped potential in the residential category, and numerous opportunities in the retail, commercial and industrial segments of the market in the near term. He explained that the growth in the commercial segment has been driven by new investments in high growth sectors like retail, hospitality/tourism and telecommunications, while the spike in demand for residential housing is linked
to population growth & rising income levels (emergence of middle class). He disclosed that although real estate development activity is increasing in several states of the federation, demand and supply for commercial and residential properties remain more predominant in Lagos, Abuja and Port Harcourt. Ettah said that though there are indications of over-supply in the premium market segment evidenced by high vacancy factors and declining rentals in Ikoyi, Victoria Island and
Abuja, the retail sector of the market was still on a growth path. The chairman said company continued its ongoing developments in 2015 and commenced some new ones, He pointed out that the challenges being faced by the market in terms of issues with titles, high cost of funding, inadequate mortgage financing and poor infrastructure were expected to persist in the medium term and would continue to prevent effective demand in the low/medium residential market segments.
25
T H I S D AY • WEDNESDAY, MAY 28, 2016
BUSINESSWORLD
EQUITIES WATCH
CSCS Rides on Innovation, Diversific The Central Securities Clearing Systems Plc rode on innovation and diversification to end 2015 with a N4.5 billion profit, notwithstanding the drop in the volume and value of transactions at the stock market, writes Goddy Egene The Nigerian stock market has suffered significant decline in the past two years with the Nigerian Stock Exchange (NSE) All-Share Index ASI falling by about 34 per cent. Similarly, volume and value of transactions have also witnessed downward trajectory, meaning reduced business volume and income for most operators and stakeholders. One of such critical stakeholders in the market is the Central Securities Clearing Systems (CSCS) Plc. The CSCS is the clearing house of the Nigerian capital market, making sure that all activities in market are cleared, settled and investors get their value of the proceeds of transactions. It generates its revenue from these services. The down turn in the market witnessed in 2015 was expected to have a massive impact on its operations and bottom-line for 2015 financial year. However, innovation and diversification embarked by the company paid off as it ended the year with commendable results as disclosed to the shareholders last week during the company’s annual general meeting in Lagos. CSCS ended the year with a profit after tax of N4.460 billion. Corporate profile The CSCS Plc was incorporated on July 29, 1992 as a financial market infrastructure (for the Nigerian capital market. It commenced operations in April 14, 1997 and became a Public Liability Company (PLC) on 16th of May 2012 by a special resolution. The company was licensed by the Securities and Exchange Commission (SEC) as an agent for Central Depository, Clearing and Settlement of transactions in the Nigerian capital market. It operates a computerised depository, clearing, settlement and delivery system for transactions in securities in the Nigerian capital market. CSCS facilitates the delivery (transfer of securities from seller to buyer) and settlement (payment of bought shares) of securities transacted on the approved Nigerian Exchanges. It enables securities to be processed in an electronic book-entry form thereby substantially reducing the period it takes a transaction to commence and end. Board/ownership structure CSCS is owned by the Nigerian Stock Exchange (27.2 per cent); Access Bank Plc and Ecobank Nigeria Limited (7.5 per cent each); Sterling Bank Plc (5.6 per cent);United Bank for Africa Plc (5.4 per cent). Other investors control 46.8 per cent. The board of directors of CSCS is led by Oscar Onyema, who is chairman, while Mr. Kyari Bukar is Managing Director/Chief Executive Officer. Other directors are: Mr. Bayo Olugbemi; Mrs. Ifueko Omoigui-Okauru; Mr. Sola Adeeyo; Mr. Haruna Jalo-Waziri; Obinna Nwosu; Kennedy Uzoka; Omokayode Lawal; Mr. Emeka Madubuike and Mr. Ariyo Olushekun. Although the company went public in 2012 the shares are yet to be listed on the NSE and are only on NASD Plc, the platform that facilitates the trading of public companies that are not listed on the exchange. 2015 Results CSCS recorded total operating income of N7.602 billion for the year ended December 31, 2015, down by 7.8 per cent, while total operating expenses rose by 4.2 per cent from N2.482 billion to N2.586 billion. Profit before tax stood at N5.016 billion, showing a decline of 13 per cent, compared with N5.759 billion in 2014. The company ended the year with profit after tax of N4.460 billion, which is marginal 3.5 per cent fall, compared with N4.622 billion in 2014. However, shareholders’ funds grew by 14 per cent from N20.581 billion to N23.818 billion, while total assets grew by 10.1 per cent from N23.073 billion to N25.402 billion. Based on the performance, the directors recommended a N1.336 billion, which translates to 26 kobo per share. Management’s comments Speaking on the performance, the CEO, Bukar
study tour to STRATE in South Africa; Africa’s leading Central Securities Depository (CSD), to gain firsthand information about the CSD’s operations and its product & service offerings, so they can apply their learnings, as appropriate, to improve their business. “CSCS and STRATE have since signed a Memorandum of Understanding (MoU) to foster cooperation in securities depository and settlement related matters to help drive the prosperity of their financial markets, promote cross-border investment, and explore opportunities for cooperation in depository, settlement and in the establishment of an operations linkage. We have used information garnered from STRATE and other CSDs with respect to trends in the depository, clearing and settlement services business to reevaluate the company’s five year strategic plan, which we operationalised in 2012, and have come up with a revised plan for the final two years (2016 to 2017). The revised plan bears three strategic pillars namely expand revenue base; increase efficiency in depository, clearing and settlement services; develop strategic alliances across businesses and regions,” he said.
Bukar
said the market was negatively affected by the unstable naira exchange rate which discouraged foreign investors from the bourse. He said as a result, projected earnings from clearing and settlement services provided to capital market participants which constitute a significant part of our income lines was dashed and unmet. “Data from the NSE at December 31, 2015 showed that the equity market dipped by 17.36 per cent compared with a decline of 16.14 per cent posted in 2014. The equity market capitalisation, which opened for the year at N11.478 trillion, lost N1.628 trillion to close at N9.850 trillion on December 31, 2015 due to huge price losses suffered by some blue chip stocks. These outcomes were unfavourable to our financial performance and led to a decline in our income by 7.77 per cent in 2015 with total earnings of N7.6 billion as against N8.2 billion in 2014. The operating expenses stood at N2.58 billion in 2015 as against N2.48 billion in 2014. This indicates an increase of 4.19 per cent from the previous year. The year ended on a profitable note with our profit after tax at N4.46 billion, although this is a tail
off by 3.50 per cent from preceding year’s figures of N4.62 billion due to huge investments made towards our new CSD infrastructure,” he said. Bukar added that the company recorded a significant increase in the value of equities settled from N2.32 billion to N50.92 billion, indicating an increase of 2,091.5 over previous year’s statistics on the NASD OTC market. “In the debt market, CSCS settled a total of N1.781 trillion, representing an increase of 228.71 per cent over the 2014 records. Also, the volume of transaction settled increased by 25.6 per cent from 1.48 billion units in 2014 to 1.86 billion units in 2015. Amongst other factors, the upward turn could be attributed to our recent connection to the Central Bank of Nigeria (CBN) Scripless Securities Settlement System (S4) effective October 2015. Through this connection, we have been able to update the records of retail FGN bondholders and their holdings, deliver and receive FGN Bonds on S4 for dealing member firms and clients,” he said. Strategic plan The chairman, Onyema also said during the year under review, the Board embarked on a
CSCS PLC 2015 FINANCIAL SUMMARY 40 35
DEC. 2015
N25.402bn DEC. 2014 N23.073bn
30 25 20 15 10
DEC. 2015 DEC. 2014
N7.602bn N8.242bn
5
DEC. 2015
DEC. 2014
N5.759bn DEC. 2015 DEC. 2014 DEC. 2015 DEC. 2014 N5.016bn N4.622bn N4.460bn N2.586bn N2.482bn
0
TOTAL OPERATING INCOME
TOTAL OPERATING EXPENSES
PROFIT BEFORE TAX
PROFIT AFTER TAX
TOTAL ASSETS
Expand revenue base The chairman said with over 17 years of successfully providing depository, clearing and settlement services, the company consider the time is ripe to chart a new course and replicate its core business successes in adjacent businesses. “We have therefore identified new businesses, which will create value and help to further deepen the Nigerian financial markets and other business sectors. Presently, we are working with the NSE and other relevant stakeholders to establish a Central Counterparty Clearing House (CCP) that would act as the clearing infrastructure for the sale and purchase of derivatives securities and commodities in the Nigerian capital market. We have also established the framework for a repository company to enhance record keeping of insurance data and policies,” Onyema said. Increase efficiency According to him, the company continues to strive to ensure that its systems remain robust and highly scalable to drive its operations and deliver excellent experience to customers. “In 2015, we began full implementation of our new clearing and settlement software (TCSBaNCS) developed by top provider of IT solutions and big data systems, TATA Consultancy Services. The project, which we have termed Project Meridian, is currently running on schedule and is expected to be completed in February 2017. The software possesses a range of unique features that enables clearing and settlement of multiple asset classes including derivative products,” he said. Future outlook Although the company made a lot of gains in 2015 despite the economic challenges recorded within the year, Onyema said it would build on these gains and move to stronger position within its Sector. He said: “We will continue to pursue achievement of our strategic goals. In 2016, our aim shall be to strengthen our management team to keep it competitive and focused on executing business strategy as it relates to our core businesses, whilst implementing new business initiatives that will guarantee our sustainability as a profitable enterprise.” According to him, the company will continue to enhance its good governance practices as reflected in the various changes made at the Board level. He added that CSCS had introduced a new Committee structure in 2015 and as “we progress, we trust the new structure will ensure increased board effectiveness and continued compliance with the requirements of the Securities and Exchange Commission (SEC) code of corporate governance for public companies.”
26
T H I S D AY • WEDNESDAY, MAY 18, 2016
BUSINESSWORLD
ANALYSIS
Tackling Liquidity Concerns in African Capital Markets Eromosele Abiodun posits that to attract investors, tackle liquidity concerns in African capital markets, legacy issues of poor macroeconomic management and fiscal discipline as well as persistent corruption and weak institutions, must be addressed
Development financing continues to be a big challenge but some hope is emerging for African countries. The size of the resources needed to lift countries out of poverty by 2020 or 2030 continues to increase. Some estimates put the resources needed at over $200 billion a year for energy, irrigation, roads and rail; while there are also similar figures required for improvements in health, education and social protection. Countries, experts believe, will need to make progress on all these fronts to reduce poverty and improve the standard of living of their populations. Progress is, however, being made. For instance, 11 African countries have grown sustainably at 6 per cent or above since 2009. These countries, which include Nigeria, Rwanda, Tanzania, Mozambique and Sierra Leone, are now attempting to protect this growth, fast -track it and make up for lost time. Also, African countries are looking for ways to accelerate development and meet the expectatons of their populations. Financial institutions are making great strides in developing a range of products to match the demands of these countries. Innovation in development financing has the potential to be a determining factor for rapid, sustainable and inclusive growth over the medium term. Access to capital markets is one recent phenomenon
on the African continent. The development was boosted by the Federal Reserve’s quantitative easing policy of injecting money into the United States (US) economy. Between November 2008 and September 2013, the US Federal Reserve purchased approximately $3.5 trillion in bank debt, mortgage-backed securities and Treasury notes. As a result, capital markets were flooded with excess liquidity and unprecedented low interest rates suppressing returns in the U.S. and other developed markets. This drove investors to emerging and frontier markets for better returns. Particularly, the response was very strong from sub-Saharan African countries. The number of international bond issuances by sub-Saharan African countries accelerated from only three issues in 2006 and 2007 to over six issues in 2013, it continued that note in 2014. In addition to South Africa, eight countries in the region tapped the international capital markets, including first-time issuers Ghana, Gabon, Senegal, Namibia, Nigeria, Tanzania, Zambia and Rwanda. Cape Verde also issued its first international bond, while Kenya issued its inaugural euro bonds in 2014. This was on a continent where it was difficult to attract investors due to legacy issues of poor macroeconomic management and fiscal
discipline as well as persistent corruption and weak institutions. Reality of tapering However, as the reality of tapering—a reduction of the Fed’s quantitative easing policy set in, things have since changed for most of these countries. Nigeria particularly has been most affected because of the decision of the federal government to introduce capital controls as a result of the decline in crude oil price that triggered foreign exchange crisis. The tapering has squeezed out capital and made investors that were previously interested in Africa take a second look. Some have, however, stayed behind. This, analysts said, is because investment opportunities exist and on average country macro-fiscal balances remain sound. Nevertheless, there has been an increase in the average cost of capital for most investors. For example, Nigeria, Rwanda and Mozambique, who all went to market with below-investment grade sovereign ratings, will likely experience higher rates as higher risks are incorporated in the prices. This will be costly. The trade-offs between access to capital and costs will be more important and countries need to manage this transition. Liquidity concerns Africa stock exchanges are very concerned
and are making efforts to address it. Recently, the Nigerian Stock Exchange (NSE) in collaboration with the African Securities Exchanges Association (ASEA) hosted the 5th Building African Financial Markets (BAFM) capacity building seminar themed, “Addressing Liquidity Concerns in African Capital Markets.” That was the first time the BAFM was hosted outside of South Africa. The seminar was dedicated to fostering collaboration and knowledge enhancement among stakeholders in the African financial market. The BAFM seminar is a capacity building initiative championed by ASEA in collaboration with its members, and it is designed to promote growth in African financial markets. In his opening address, the Chief Executive Officer of the NSE, Mr. Oscar Onyema, noted that African capital markets are instrumental in financing the continent’s infrastructure and capital requirements. However, he pointed out that many African stock markets are characterised by a lack of liquidity. “This is why the topics to be discussed over the next two days by experts from Europe, Middle East and Africa are designed to build capacity around liquidity enhancement by driving new learning in the securities trading business, including information security which
27
T H I S D AY Ëž Ëœ ÍŻÍśËœ Í°ÍŽÍŻÍ´
LEADING COMPANIES BY MARKET CAPITALIZATION
11%
Three share indices in SSA, 2016 (% chg ytd)
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7% 43%
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is increasingly a high risk area in our markets. “In addition to being relevant to exchanges, the topics are also particularly apt for the African broker dealer community, clearing, settlement and depository (CSD), regulators, central banks and other financial institutions who will benefit from improved liquidity in African capital markets, and also by the users of derivative products that are beginning to gain attention in our markets. Indeed we have people from about 17 countries registered, “he said. Onyema added that the decline in commodity prices, geopolitical tensions, lower Chinese growth, and the relative weakening of local currencies in Africa resulted in slower growth across a number of economies in 2015. This, he stated, was mirrored by the performance of benchmark indices of many African exchanges, with almost all closing the year on a negative note. “Despite the challenging operating environment in 2015, many countries in sub-Saharan Africa are expected to see a gradual pickup in growth in 2016. According to research by Thomson Reuters, African initial public offers (IPOs) are set to raise over $3.1 billion in 2016 doubling the amount raised in 2015, and the highest value raised in any year since 2010. Technology, Consumer Essentials and Industrial sectors are set to be the busiest among the 15 IPOs in the African pipeline. Now, what does this mean for us? It means that we must position African capital markets as a viable funding source for the anticipated growth, and liquidity is the key success factor to this goal. “Sub-regional integration efforts such as WACMI in West Africa, CoSSE in Southern Africa, and EAC in East Africa are important initiatives that have the potential to unlock demand among issuers and boost liquidity. The African Exchanges Linkage Project (AELP) which is a jointly owned mandate between ASEA and the Africa Development Bank (AfDB), is also aimed at addressing the lack of liquidity in African capital markets. Thus, these initiatives are encouraged to fast-track the integration of their regional markets,� he added. Facilitator of liquidity Like integration, the NSE boss stressed that technology has become a facilitator of liquidity. Historically, he said the technology focus for exchanges was on execution, “however today, the focus has shifted to information services, pre trade, and post trade dimensions. Accordingly, information services, pre-trade and post-trade are where the next waves of innovation for exchanges are expected to emerge. Emerging technology such as block chain and fintech are gaining traction. “Business models such as Uber and Airbnb who have no taxis or rooms but yet create liquidity in them, demonstrate that technology does not create liquidity on its own but instead it brings together market participants, and that leads to liquidity. In the capital markets, technology can be powerful, as it can bring very diverse market participants together as you will see in some of the sessions scheduled later in this programme.� He added: “Building the African financial market is our collective responsibility, hence we must seek out knowledge that empower each of us to remove impediments such as outdated systems and trading practices that impede the ability of African exchanges to handle sizeable capital inflows. Evolution in local regulation is starting to increasingly
</5$%+
provide the opportunity for pension funds to diversify their expanding portfolios beyond equity investments in traditional sectors, such as banking and oil & gas availing additional pools of funds to be traded in our markets. â&#x20AC;&#x153;These and many more are some of the untapped opportunities waiting to be explored, and it is imperative that we are prepared to take advantage of these opportunities. Luck they say is what happens when preparation meets opportunity. Therefore, let us create and take ownership of our own luck, by engaging and participating in this rich seminar, and then proceed to leverage the knowledge in innovating, and enhancing efficiencies in our different capital markets. â&#x20AC;&#x153;I am confident that the learnings from our interactions during this seminar will elevate our business strategies to ride out the headwinds that our markets have experienced in recent times. In the end, I hope that we are better positioned to unlock the growth potential of our economies, and are empowered to advance the development of our capital markets.â&#x20AC;? LSEâ&#x20AC;&#x2122;s bold step To address liquidity concerns in African capital markets, the London Stock Exchange (LSE) had earlier in the year set up the African Advisory Group. The group consists of prominent business personalities in Africa and its aim is to formulate policy frame work towards growing the African capital market. The LSE Advisory Group for Africa was initiated by the CEO of the LSE, Xavier Rolet. A prominent member of the group and Chairman of Seplat Petroleum Plc, Dr. ABC Ojiakor, in an interview with THISDAY recently, described the LSEâ&#x20AC;&#x2122;s effort as a very novel, innovative and strategic. According to him, â&#x20AC;&#x153;What this sets out to do is to bring senior African business persons and institutions that would sit down, interact, articulate and formulate policy frame work towards growing the African capital market which has been variously challenged over the years and this would mean that this advocacy group would have regular interactions. They are going to be the ones that will act as an advocacy group that will cut across regulatory bodies as well as the institutions for investments as well as the investors themselves. So part of the things we will be doing, will be regular interactions, formulation of approach to regulations and begin to look at ways to address the challenges that face the African
If you look at the African continent, there are 54 countries but only about 25 of them have stock markets. Now when you look at that, only about four maybe five are active; South Africa, Nigeria, Kenya, Egypt and Morocco
capital market as well as look at ways to tap all the enormous opportunities. The ultimate goal really is to encourage prosperity in the African continent.â&#x20AC;? Speaking on the major difficulties facing African capital markets, he said: â&#x20AC;&#x153;The African capital market is facing a lot of challenges, this was why the LSE Advisory group for Africa was put together to tackle these challenges. I think the challenges of the African capital market is very wide ranging. It ranges from very low financial capacity and debt to very low liquidity levels. And in between this spectrum, you get other things like sparse interior sectorial involvement and the rest of it. Now if you look at how these are impacting Africa that means that the volume of businesses that can be done in Africa that will have attraction to international investors is very low. â&#x20AC;&#x153;If you look at the African continent, there are 54 countries but only about 25 of them have stock markets. Now when you look at that, only about four maybe five are active; South Africa, Nigeria, Kenya, Egypt and Morocco. The rest of them are still at the rudimentary level. Now this poses a challenge, it means that various companies and entrepreneurs in the African continent who have great ideas that can go places are unable to tap investable capital, the reason being that they are listed. Remember what I said, low capacity, finances, and low liquidity. Not being listed on the exchange means that they donâ&#x20AC;&#x2122;t have visibility that is required for capital flow. So this is one area that the London Advisory Group will be advising. We are an advocacy group as it were to champion bringing together likely African corporates face to face with global investors. â&#x20AC;&#x153; Investable capital He added that there are trillions of investable capital looking for opportunities, adding that Africa is a major frontier for growth. He said: â&#x20AC;&#x153;But if these companies in Africa do not have the visibility and the easiest way to have this visibility is to be listed in any of the exchange. Now, that is one. The second one we stress about is the fact that we have many companies that even if they are looking out do not know how to go about it. One of the things we are going to be doing is to have serious cooperation between the LSE and the various countries in Africa. We are looking to have three levels, one is at the country level, and the other one is regional level and then global Africa level. Also we are looking at the possibilities of how we can have intra Africa growth and integration such that you can have a corporation in West Africa for example. â&#x20AC;&#x153;We want to do this so that where you do not have visibility of stock exchange in any particular country; they can aggregate around a more visible one like the NSE in the West African region and you can see the Kenya Stock Exchange in the East African region. South Africa is the biggest market in the south and in the North you can look at Morocco and Egypt. The real view is that a lot of entrepreneurs can latch unto this, make them visible. The LSE will create opportunities for investors to have all of these. Now one of the things weâ&#x20AC;&#x2122;ll look at very strongly is to look at one of the models the LSE has developed. We have what they call the 1000 companies to inspire Britain.â&#x20AC;? This, Orjiakor stated, was championed by Xavier Rolet, adding that what it did was to
create visibility for about 1000 SMEs in Britain bringing them together with investors. Some of them, he disclosed, are growing at the rate of over 50 per cent annually but have no real experience with the investors. He said: â&#x20AC;&#x153;Some of them are family businesses so that what this has now done is help some of them grow themselves through making themselves investable for equity capital. And when that happens a good number of them, are now migrating to become listed securities, in that process you have succeeded at making real entrepreneurs have access to capital and grow the company. Even in Europe this is a major advantage because there is still quite a high level of unemployment and this mechanism has been proven to help create jobs through entrepreneurship growth. â&#x20AC;&#x153;Another thing we looked at is to see how we can replicate this in Africa. Part of the things the advocacy group is looking to do is to have 1000 companies in Africa to inspire growth in Africa. So we are looking at ways to adapt this method. In doing that, we also exchanged a lot of ideas about what we are already doing. If you look at a case like Nigeria, we are very clear in our minds that the informal sector in this country is wider than the organised private sector. Now we have the Director General of the National Pension Commission (PENCOM), Chinelo Anohu-Amazu as a member of the LSE Advisory Group for Africa.â&#x20AC;? He added: â&#x20AC;&#x153;We also have the CEO of the Nigerian Stock Exchange as a member of the advisory group, one of the things that came out is that both of these have programs that are addressing the informal sectors as well as the SMEs in Nigeria. So, if we can adapt and collaborate with the LSE to see what they have done with the 1000 companies in Britain we will see how that would help. Another thing we spent quite some time doing is to listen to Sir Gilfold, I think he is the lead of the Commonwealth in the emerging market; part of the presentations he made was the Nigeria-UK co-operation. I think, in that, he had the president of the Nigerian NSE council, Aigboje Aig-Imoukhuede, as a member of his team. It all shows that these kinds of co-operations will enable growth of the capital market not just in Nigeria but in the African continent.â&#x20AC;? He said the inaugural meeting of member happened on the 21st of March this year, adding that some of the problems facing African markets have been addressed. Specifically, he said: â&#x20AC;&#x153;We have already looked at using the UK-Nigerian co-operation of the capital market as a model that can spread to other parts of Africa. We made a strong point and the group recognised what Seplat did being an indigenous company and then took a view in developing the African capital market ecosystem. A company like Seplat will need to play a leadership role, being a mentorship company for the rest of the companies as they come, making sure that the Seplat example can be replicated and encouraging others to participate. â&#x20AC;&#x153;The other thing we did was to look broadly at those challenges facing the African capital market. I have talked about the debt of financial levels, I have talked about the liquidity issues, and I talked about the sectorial intensity so that the cost of business in the African capital market is encouraged. In that way we will reduce the barriers between the investing capital and the companies.â&#x20AC;?
28
T H I S D AY • WEDNESDAY, MAY 25 2016
BUSINESSWORLD
ANALYSIS
Healing a Wounded Economy
The negative economic data calls for policymakers in the country to roll up their sleeves and get to work in order to save the economy from plunging into recession, writes Obinna Chima The negative real Gross Domestic Product (GDP) of -0.36 per cent year-on-year recorded by the country in the first quarter of 2016 has remained a source of concern to a lot of Nigerians, especially players in the financial market. There is the possibility of another negative growth in the second quarter of this year, except something dramatic happens. If that happens, it means officially, the economy would have entered into recession. This, besides the 13.72 per cent inflation rate that was recorded in April as well as the deteriorating macro-economic indicators has heightened the call for policies that would stimulate economic activities in order to save the economy from a likely recession. The unfortunate development was attributed to the policy vacuum, delay in signing the budget, high level of procrastination in making critical policy pronouncements, the activities of the militants in the Niger Delta, which led to attacks on oil installation thereby affecting the country’s revenue and scarcity of foreign exchange for the importation of basic raw materials. Indeed, the first objective of the Central Bank of Nigeria (CBN) is to ensure monetary and price stability, a mandate it has been pursuing vigorously. Price stability is a situation where the average change in prices of goods and services is just sufficient to support the growth of the economy. It does not necessarily mean that prices are not changing in the economy, but rather connote a situation where the average increase in the general price level is matched with a corresponding growth in the aggregate economy. Juxtaposing the latest GDP figures with the Consumer Price Index (CPI) for April 2016 that put inflation rate at 13.72 per cent - far above the central bank’s target band of between 6 – 9 per cent and the strong volatility observed in the parallel market arm of the forex market (which a lot of investors perceive as a true reflection of the country’s exchange rate), shows that there is need for the central bank to adjust its monetary policy tools so as to support the much desired economic growth. Latest GDP Growth The country’s GDP growth rate declined to -0.36 per cent in the first quarter of this year (Q1 2016) compared to 2.11 per cent in Q4 of 2015, the National Bureau of Statistics (NBS) revealed. Also, unemployment rate in the Nigerian economy climbed to 12.1 per cent in the first quarter of this year (Q1 of 2016) compared to 10.4 per cent in Q4 of 2015 and 9.9 per cent in the Q3 of 2015. According to the first quarter 2016 GDP estimates, Q1 growth rate was lower by 2.47 per cent from the growth recorded in the preceding quarter and further lower by 4.32 per cent from the rate recorded in the corresponding quarter of 2015. Quarter on quarter, real GDP slowed by 13.71 per cent, the NBS added. According to the statistical agency, real growth of the oil sector slowed by 1.89 per cent (year-on-year) in Q1 of 2016. This represented an improvement relative to growth recorded in Q1 of 2015 when growth slowed by 8.15 per cent. Growth also increased by 6.39 per cent relative to growth in Q4 of 2015. Quarter-on- Quarter growth also improved by 10.27 per cent, NBS said. According to a report, the number of unemployed in the labour force increased by about 1.449 million persons between Q4 of 2015 and Q1 of 2016 resulting in an increase in the unemployment rate. The NBS report stated that the country was unable to create the 1.5 million jobs required between Q4 of 2015 and Q1 of 2016 to keep the unemployment rate constant at 10.4 per cent in Q4 of 2015. Also, the NBS stated that the active labour population-those within the working age population willing, able and actively looking for work- increased 1.99 per cent to 78.9 million in Q1 compared to 76.96 million in Q4 of 2015 and 75.94million in Q3. Awaiting FG’s Injection The federal government’s plan to inject money into the economy is being awaited. This, to a lot of commentators would help stimulate economic activities and also contribute to growth.
President Buhari
The Finance Minister Mrs. Kemi Adeosun recently spoke of the federal government’s plans to inject N350 billion into the economy quarterly to stimulate growth. She said the fund would be released soon after the budget was signed. “As soon as the budget is signed, we are going to pump N350 billion into the economy in this quarter and we are going to do so every quarter until we stimulate growth. And we would see growth if we spend money on those things that would create jobs,” she added, saying that “there are no quick solutions to fixing the economy.” “If you have cancer, you cannot take panadol; you have to take proper medication. I don’t want to come here and give people false hope. I don’t want to use the word magic because ministers get into trouble when they use the word “magic”. It has to be done painstakingly,” she said. Prescriptions for Growth The Managing Director, Financial Derivatives Company Limited, Mr. Bismark Rewane pointed out that the amount of stimulus required to reset the economy would be profound. “In the first quarter of this year, we had no budget and we had no spending. Meanwhile we blocked leakages. Although we sterilised cash, we did not jumpstart the economy with spending. On the other hand, we had no exchange rate policy. “So, the consequence of all of these put together and the complete evaporation of international investors from the market, affected the economy in the first quarter of 2016. More than anything else, the vandalism of pipelines all came together to create the storm. “So, the amount of stimulus required to reflate the economy and the policy management would have to be much more profound for us to get the desired effect,” he added. He however acknowledged that with policies such as the removal of fuel subsidy and the path to downstream deregulation, the economy was on the right path, just as he maintained that Nigeria needs to adopt a flexible exchange rate policy. “These are inevitable and if not done, it would
Adeosun
be catastrophic and damaging to the economy. This is crunch time as far as I am concerned for Nigeria,” he added. To analysts at CSL Stockbrokers Limited, the poor manufacturing data recorded in the first quarter of the year meant that the non-oil sector saw negative growth (of -0.2%) for first time since the data series began. “If any more evidence was needed that the Central Bank of Nigeria’s foreign exchange policies are not working, the massive decline in manufacturing and increase in unemployment in Q1 surely provide that evidence,” CSL stated. On his part, a Senior Lecturer at the Department of Economics, Pan-Atlantic University, Dr. Bongo Adi, called for a proactive approach to policy implementation. According to him, delays in taking policy decisions also have its consequences on the economy. “One of the stabilisation policies they have done is the removal of subsidy on petrol that the government has already done. That means that the government would have some money to spend on capital expenditure. But there are other pressure mounting on government like the blowing up of pipelines by militants in the Niger Delta. Oil production is at an all-time low and that remains a challenge for us all,” he said. But in order for the country to effectively address most of the developmental needs of the country, Adi, stressed the need for increased focus on competitiveness. “What is the basic determinant of competitiveness? It is nothing other than the skills and competences of people and citizens. In order to improve your competitiveness, you need to invest heavily on education. “If people are well educated, they can add value to others or add value to themselves. The problem in Nigeria today is that we have a huge-mismatch between what people claim to know and what they are able to do. That is one problem. The second problem is that we lack the adequate skills to transform our economic system. “From one discipline to the other and from one department to another, you will notice this huge gap in education and we need to bridge
that gap by investing in quality education from the primary, secondary and tertiary levels. We have to invest in research and development. Now, this is not about singing the mantra of research and development over the years. If you break down research and development, what you get is education. “People need to have advance skills and you can’t get advanced skills if you haven’t developed certain fundamental skills. So, competitiveness is all about improving the skills of the people,” he explained. On his part, the Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Mr. Muda Yusuf, argued that the country’s monetary policy regime remains detrimental to its growth. Yusuf insisted that the current monetary policy environment brings about unfavourable economic conditions such as depressed economic activities and ultimately results to low sales, weak consumer demand, huge inventories by manufacturers, liquidity squeeze and tight cash flow conditions in the economy. The LCCI boss listed other consequences of a monetary policy regime not favorable to the manufacturing sector to include high risk of loan defaults, poor access to credit, weak financial inclusion, limited capacity of firms to retain or create new jobs, crowding out of domestic investors by foreign investors as well as influx of hot money into the economy. “What is paramount at this time is the stimulation of the economy and that is the norm globally. Affordable and long-time finance may not be a sufficient condition for economic growth, but it is a necessary condition. Cash is the life blood of business! We acknowledge the structural and institutional bottlenecks in the economy and their impact on economic growth,” he maintained. All in all, if Nigeria’s policy makers don’t act boldly and swiftly, a bad situation could become dramatically worse. Clearly, the medicine the economy needs is a stimulus package that would boost employment and drive investments in critical sectors of the economy. Also with the situation at hand, it is important that policy makers prioritise growth above price stability.
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T H I S D AY • WEDNESDAY, MAY 25 2016
BUSINESSWORLD
ANALYSIS
Commodities Exchanges as Paths to Diversification Goddy Egene writes that well-functioning commodities exchanges are needed to boost the diversification of the nation’s economy
Gwarzo
It is now very obvious and imperative that the Nigerian economy needs urgent diversification. Past governments have harped on the need for the nation’s economy to be diversified from its reliance on oil as the mainstay. While Nigeria is blessed with other numerous mineral resources and fertile land for agriculture, little had been done to tap those potential. However, with the declining price of oil, which has affected the revenue of the government, efforts are being intensified to ensure that the sectors are developed to contribute to the revenue. Agricultural produces, solid minerals and other commodities are attracting the attention of the government. But it is believed that for government to fully realised the huge potential of other sectors, functional commodities exchanges are necessary. There are two commodities exchanges in the country-Nigerian Commodities Exchange and Afex Commodities Exchange- which are promoting the trading of commodities. But given the importance role they will play the diversification programme, more is needed to be done to ensure they function very well. Apparently aware of the foregoing, a London-based firm, INTL FCStone Limited, in partnership with Afex Commodities Exchange Limited organised a training seminar on commodity trading and risk management in Abuja. The forum brought together a team of leading practitioners in the world’s major commodity markets and capacity-building specialists with experience in African financial markets who focused on building skills in commodity trading, hedging and risk management. The Director General of the Securities and Exchange Commission (SEC), Mounir Gwarzo, who was the chairman of the seminar disclosed that considering the important role commodities exchanges will play in advancing Nigeria’s economic diversification goals, they in the capital market community had taken steps to prepare the stage for vibrant commodities exchanges to emerge in the country. Economic transformation Gwarzo noted that as Nigeria pursues policies aimed at diversifying the economy, creating jobs and hastening socioeconomic development, it
Balogun
is becoming increasingly clear that commodities exchanges can play a crucial role in actualising these lofty objectives. According to him, a detailed empirical study by the United Nation’s Conference on Trade and Development (UNCTAD) analysed the impact of commodities exchanges on development in emerging markets. He explained that countries that were part of the study are also emerging countries with the most vibrant commodities markets such as India, Brazil, China, Malaysia and South Africa. He said among the many insights in study’s report is the fact that commodities exchanges play a central role in facilitating economic development especially by helping farmers to enhance their marketing and risk management capacity such as reducing their exposure to price and other production risks. “For Nigeria, developing the commodities market could prove even more critical. With the policy thrust of the federal government to encourage investments in the agricultural and solid minerals sectors, now more than ever all hands must be on deck to develop a commodities market that can support these policy objectives,” he said. The SEC boss noted that Nigeria ranks number one in global export rankings for commodities such as kolanut, shea nuts and shea butter, cassava, and yams. “We also feature in top exporters for other commodities such as cocoa, rubber, oil palm, cashew and sesame seed. Our ginger is reputed to possess the best aroma in the international markets. Export opportunities also exist for a wide variety of other agricultural commodities. This simply magnifies the potential of our agricultural sector to contribute significantly to economic growth and development,” he said. 10-year master plan Gwarzo said the 10-year capital market master plan, which is the blueprint for the growth and development of the market that is being implemented, acknowledges commodities exchanges as critical for enabling investment diversification, risk management, price discovery and transactional efficiency. “In fact, within the master plan the capital market community expresses strong belief
that to boost Nigeria’s competitiveness, we must develop a thriving commodities trading ecosystem,” he said. According to him, this can be achieved by implementing some strategic initiatives. The initiatives include building a supporting and functional ecosystem for commodities trading providing legal framework and appropriate legislation for commodities trading. “We are reviewing the Warehouse Receipt Bill after which we will actively advocate its passage,” he said. The SEC DG said part of the initiatives also is to build centres of excellence in areas of comparative advantage such as for oil and gas, cocoa. He said: “We will develop efficient commodities exchanges and trading platforms sponsor legislation to ensure Nigeria’s crude oil sales are traded on local exchanges, build capacity in commodities trading at the SEC and among market operators. I give you my personal commitment that all areas of the master plan will be implemented to the fullest, particularly aspects that have to do with building the commodities market. We are prepared to support the establishment of a vibrant commodities market, with regulatory oversight and the passage of rules guiding the activities of all market participants.” Empowering farmers Country Manager, Afex Commodities Exchange, Ayodeji Balogun said their approach is to create a commodities market that includes the small local farmers, saying they are not providing an exchange for the financial market alone. “That means that we have to look for ways to educate the market in a way that they understand what the phenomenon is broadly, but also how we have tried to hatch it out into the realities of the sub- Saharan Africa and the Nigerian agricultural sector,” he said. Balogun explained that one of the key elements of the entire capital market master plan is to create the interactability of the capital market so that players in the market, be it a stock broking firm or other players in the market will be able to trade across multiple
platform as you know, there is FMDQ OTC market, equities, NASD OTC market as well. “So with the commodities also being available, I think that is one of the things that will place Nigeria ahead of other African countries when it comes to interfacing with both the international commodities and financial investment public. There will be cross collaboration. It won’t be farmers or the financial market alone,” he said. Challenges facing commodities exchanges Speaking on some of the challenges facing commodities exchanges, Balogun said some think-tanks of the industry will put it that there are four Ps(products, purpose, participants, policy) you need to put in place when you are setting up a commodities exchange. “So you need a product and have a definition of what your product will be, you have to have a purpose, in our case, one of our purposes is inclusiveness, so we want to have the entire markets both from the high level sophisticated financial banking institutions all the way to the small local farmer with one or two bags of maize included in the entire market. You have to have the participants which are the players on the market and then you have a policy framework for the market. If you look at all these, our strategy means that we have to have a very robust approach to cater for the different tiers of the market but we have found very innovative ways to manage that and I think we are doing very well. On the policy part, the warehouse receipt bill for instance is very crucial to the development of the capital market and we have seen this play out in many African and the Middle Eastern and Asian Countries,” he said. According to there has been a warehouse receipt bills that had been created which actually worked against the market developments. “So there is a need for a very inclusive and very robust approach to the development and I am very happy that the SEC as well as the Ministries of Agriculture, trade and investment and other financial market players are approaching this so that we have a broader view, create a bill that is inclusive and unlock the opportunities we could have with the commodities exchange,” Balogun said.
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T H I S D AY • WEDNESDAY, MAY 25 2016
BUSINESSWORLD
INTERVIEW
Khan: Nigeria Needs a Workable Foreign Exchange System The Managing Director/Chief Economist forAfrica, Standard Chartered Bank, Razia Khan, in this interview stresses the need to resolve the foreign exchange bottlenecks in the country. She spoke with Obinna Chima. Excerpts: What is your take on the new fuel price regime that was announced by Nigeria’s government? It is very good to see because there has been increasing doubts about the willingness to allow for pricing that would not stall economic growth. What became clear with the shortage of fuel was partly a function of the difficulty in obtaining foreign exchange. The attempt to regulate at much lower pricing did not work. What we saw was that the actual price of fuel in Nigeria was probably a lot higher than the new ceiling or the “deregulated” price. So, this is the right time for reform in the industry, by putting in place reforms that would hopefully increase the supply of fuel and deal with the bottleneck. The hope is that at this new price, there would be a lot of supply of fuel. But I think the relevance of this goes beyond the announcement. In term of showing the resolve of the authorities to deal with what had become a pressing economic issue, it obviously raises the hope that we would see a similar approach being adopted when it comes to other constraints that the economy is facing as well as other bottlenecks that have held back growth. So, it is very interesting because a part of this new fuel price regime is the idea that oil marketers would get foreign exchange that they need from whatever secondary sources might be available and they are allowed a leeway to show whatever pricing they need to show subject to a new ceiling. That at least is better that the situation we had before. In terms of public finance, there was a weak system in place previously. You never knew what he extent of budgetary commitments to subsidy was and that was an exceptional flawed system in place previously. Now, we should all breathe a more easier that Nigeria’s public finance looks to be on a sound footing simply because the uncertainty over the re-emergence of fuel subsidy appear to have gone away. But the more important thing for all is the need to adopt a pragmatic approach when it comes to policy. Clearly there was a desire to keep prices low, that wasn’t working given the forex constraints. The next question inevitably is what this means with the desire to do something about forex. So, I think the real significance of the fuel price move isn’t just the fact that we have seen some level of deregulation of fuel price, but it is an evidence of a much more pragmatic approach on the part of government. And this is going to be the key. There is a broad-based recognition that in the absence of a workable foreign exchange market in Nigeria that causes great problem to the economy. There is a forex shortage; it is the second best outcome. Many of our Nigerian clients were saying that up to a year earlier, they didn’t really mind the risk of further naira weakness on the official market if only it would come with improved availability of forex. What has been really damaging to Nigeria’s business prospects is not being able to obtain forex at at. So, any policy measure that looks like it is going to address that will be positively received. What does the hike in fuel price mean for the strength or weakness of the naira and in an expanded budget environment what would be the impact? The budget has been passed, the spending has started and so there should be more liquidity. The central bank can obviously deal with this by engaging in regular mop up. The CBN governor has said that it is not a good situation that inflation should be higher that policy rates. So, are we going to see a further tightening of policy? Well the suggestions are that, that may be the case. I don’t one should look at the impact of the fuel price hike on the parallel
khan
market to judge. But what is needed presently is spending. The other very important factor is that so much more of budgetary resources are going to be devoted to capital expenditure. I understand that the finance minister has said that it would release on a quarterly basis, N350 billion, which is a little over five per cent of the budget. If that comes on a quarterly basis, we are looking at about 20 per cent spending being capital expenditure. But that is still an improvement in what we traditionally saw in Nigeria. So, should we anticipate pressure on the parallel market with the passage of the budget? I don’t think that would come from the budget. Firstly is because the budget was passed in the context of a significant gap in public finances that had already built up. So, it is not that Nigeria is going to be hugely liquid. And also, the nature of spending. If it is capital expenditure p, it shouldn’t result into big liquidity injection into the economy. What is the outlook for inflation? This is going to be very interesting to observe. If you look closely at the National Bureau of Statistics published data, they have been putting in regular monthly schedule which they have been sending along with the Consumer Price Index (CPI), what the price of petrol is in different states and in different months. And we know that prior to the announcement of
the new fuel price regime, the price being paid for fuel was more than N145 per litre. Now, there would be some elements of opportunistic pricing because as fuel prices officially goes up, some people would use that as excuse to raise transport prices. So, it is inevitable that we would see a little of that filtering into inflation. But we should not make a mistake of thinking that this ‘deregulation’ actually a sustained price hike. This is because relative to the evidence that we have before us, in a lot of instances, higher prices were being paid for fuel prior to the new fuel price. So, inflation needs to be monitored closely. This is another argument in favor of further monetary policy tightening. The risk towards further tightening is building. It creates a dilemma for policy makers of the much weaker economic growth and a lot of the issues that they have to deal with are bottlenecks that had arisen partly as a result of policy itself. So, they do need to think about everything they need to bring inflation down. So, from our price indicator research, the suggestion was that the controls put in place that restricted some items from forex is still having an impact on month-on-month inflation. That suggests that if you really want to do something about inflation, you will have to think about whether that is the best way to go about encouraging domestic production.
When are we likely to start seeing capital inflows into the economy? No one is necessarily going to be investing still if they think that there is a foreign exchange regime that is not workable because it doesn’t allow for the queue for foreign exchange that builds up to be resolved. So, the more important thing, even more important than the level of interest rate in Nigeria is what can be done to resolve the foreign exchange bottlenecks. And any investor who talks about it solely from the view of a devaluation is probably coming up with the wrong argument. We all know know that you can’t absolutely pick a number as a fixed exchange rate regime for Nigeria that is going to work. A devaluation is not the answer. A move to a workable foreign exchange system that better equilibrates demand and supply is what Nigeria needs. That could take the form of a currency band and around a certain mid-rate. It could be a band that moves gradually over time. There are ways for the authorities to control the full extent of this. But I think it has become clear to a lot of stakeholders that this is needed. No one in Nigeria should think that a simple devaluation, with no change in the fixed income rate regime put in place in February last year is going to bring in a great deal of forex.
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T H I S D AY • WEDNESDAY, MAY 25 2016
BUSINESSWORLD
INtERvIEW
Akah: NERC’s Regulatory Competence Still Intact Acting Head of the Nigerian Electricity Regulatory Commission, Dr. Anthony Akah spoke to Chineme Okafor on pertinent issues in Nigeria’s electricity sector including the constitution of a new board for the regulatory agency. Excerpts: NERC has no board at the moment, what is the regulatory implication of this? The Act was mindful that a situation could arise where the Commission may not have Commissioners and made provisions to ameliorate any such leadership vacuum occurring there from. Section 44 subsection 1 of the Electric Power Sector Reform Act provides that: “No decision or act of the Commission or act done under the direction of the Commission shall be invalid on the ground that: (a) there existed a vacancy or vacancies among commissioners; or (b) there existed some defect in the constitution of the Commission at the time the decision was taken or act done or authorised.” Having said that, Sections 34 to 43 of the Act copiously refer to the appointment of the Chairman, Vice-Chairman and Commissioners and the duties, functions and expectations required of them. However, section 60 of the Act refers to another set of persons and their responsibilities in the Commission. Sub section 1 holds that: “The Commission shall employ such persons as it considers expedient for the better exercise of the functions of the Commission.” Sub section 3 provides that: “Subject to subsection (5) of this section, the Commission may assign to its staff such functions of the Commission as the Commission deems fit.” Again, subsection (4) states that: “Any assignment of functions under subsection (3) of this section may be made either generally or specially and subject to such reservations, restrictions and exceptions as the Commission may determine, and maybe revoked by the Commission at any time. Furthermore subsection (5) provides the extent of the functions that can be delegated to the staff. According to this subsection, “Anything authorised or required by or under this Act to be done by the Commission, other than the making of final orders, maybe done by any member of the Commission staff who has been authorised either generally or specially by the Commission to do so.” So, what then is the making of “final orders”? As the Act provides, this is the exclusive preserve of the Commission’s Commissioners? The answer is alluded to in Section 50 (2) which states that: “The Commission may, reconsider, vary, or rescind its decisions before issuing a final decision, in accordance with such procedures as the Commission may establish; provided that such review or reconsideration shall be completed within sixty days of the date it is required.” But there are other provisions in Sections 46 (5) or 49 (1). Section 46 (5) of the EPSRA 2005 empowers the Commission the right to ‘make interim orders pending the final disposition of a matter before it.’ It is therefore clear that pending the reconstitution of the Board of Commissioners by Mr. President, the Commission pursuant to the provisions of EPSRA 2005 is amply empowered to discharge its responsibilities but we look forward to having a reconstituted board. So, this has no negative impacts on your regulation of the sector? No, absolutely not. We have remained resolute in our task of providing fit-for-purpose regulation of Nigeria’s electricity industry. We don’t have a board yet but NERC’s regulatory competence is still intact. You’ve consistently talked about Discos upping their metering plans, your talks however don’t seem to have pushed the Discos enough, are you worried about this, are you thinking about new measures to check this? You know metering is critical to the survival of the electricity industry as it represents the parameter for measuring the return on all the investments sunk into generation, transmission
Akah
and supply of electricity to the final consumer. This means that for revenue protection to be guaranteed all customers should be effectively metered. On the side of the customer also, the meter ensures fairness in billing and gives confidence to the customer that he is not being overbilled or exploited. In this regards therefore metering is very important in the relationship between the operator (Distribution Company) and the customer. NERC has put in place a number of measures to enhance meter deployment to all categories of customers in the NESI. The MYTO 2015 has made adequate provisions in the capital expenditure to assist the Discos to invest massively into metering in line with their performance agreement and even to surpass the levels agreed with the Bureau of Public Enterprises (BPE). We also introduced a novel scheme for accelerated metering known as the Credited Advance Payment for Metering Implementation through which willing customers can advance money to the Discos and get metered within 45 days of payment. The money advanced by the customer will subsequently be refunded in the form of monthly electricity units with 12 per cent interest on the amount paid. Customers without electricity meters reserve the right to reject paying any estimated electricity bill they believe is irrational and pay the last bill they accepted, while subjecting the disputed one through the Commission’s customer complaint redress mechanism for determination. We are also opening up more NERC Forum offices for electricity complaints at appellate level in all the zones of the federation. NERC has a monitoring team that is evaluating the submissions of Discos on their metering performance levels and also various complaints received from electricity customers on metering and alleged issuance of crazy or unjustified estimated billings for unmetered customers. We assure Nigerians that the Commission will take a decisive action on any violation of our regulation on metering and billing soon. We appeal for patience and cooperation. But consumers are lately subjected to poor supplies; have you any protective measures against this anomaly? The Commission has put in place various customer protection regulations to ensure that
the customer is adequately protected against the vagaries of exploitation and overbilling in times of acute shortage of supply as being experienced presently. Notably, Discos are being encouraged and incentivised to accelerate their customer metering to ensure objective billing of customers in their network. The Commission recently removed fixed charges that used to be part of the bills issued to customers due to clamours that Discos were relying on such receivables for revenue and not making efforts to provide the needed services. The removal of the fixed charges now compels the service providers to ensure service delivery before they can earn revenue and thus the customer is protected from paying for service not rendered. We are also monitoring the compliance to our ‘Regulation on Estimated Billing Methodology’ to forestall arbitrary billing of customers who are unmetered or whose meters are faulty. The methodology strives to protect customers from being overbilled by providing a formula for estimating their consumption nearest to the same class of metered customers within the locality. In computing their average consumption the technical losses associated with their feeder are not added to their bills and this serves as an incentive for the Distribution Companies to expedite their metering. The CBN recently disbursed N55 billion to power operators, there are however diverse opinions about such additional bailouts for the operators, has the Commission a view on this? Well, this is a good government intervention through the CBN to help address the financial liquidity issues in the NESI. Mind you, it is not free money but loans predicated on friendlier terms and interest to stabilise the NESI, clear backlog debts and stimulate urgent investment in critical areas aimed at improved quality of power. Equally, there are talks about a regulatory framework for renewables, how far have you gone with that piece of framework? Now, NERC has been working on appropriate regulatory mechanism to help implement the draft renewable energy power policy; this will help to cushion the tariff shock on the electricity
consumer. Based on the policy, the Commission has initiated regulations for promoting renewable energy penetration namely; net metering, feed-in-tariff and competitive procurement for different size ranges. On net metering, this is expected to unleash collective capital of individuals to contribute to available power during daytime for peak load shading. The implementation of this regulatory mechanism awaits the upgrades in the distribution networks and improvement in metering. And about feed-in-tariff, it is a special concessionary tariff to incentivise electricity producers by offering more favorable pricing for electricity supplied to the grid from renewable energy sources. The feed-in-tariff for four priority resources namely; solar, biomass, wind and small hydro power of different capacity limits has already been issued by the Commission. However, feed-in tariff applies to smaller plant capacity of up to 10MW which could easily be integrated into the local distribution network. Plants with capacities above 10MW (and 30MW for small hydro plants) must be subject of competitive procurement. Cognizant of the transmission limitation especially as it relates to intermittent supply from renewable energy sources as well as the possible impact on tariff, the Commission has pegged the total contribution to transmission grid from all the renewable energy sources under the feed-in-tariff programme to 500MW up to 2018. This is in line with S.67(3) of the EPSR Act 2005 on competitive procurement because this is the most cost efficient mechanism for increasing renewable energy penetration as has been demonstrated by South Africa which was able to procure 4000MW of renewable energy in three bidding rounds with bid prices rapidly decreasing in successive rounds. Has the NERC thought about options to minimise frequent attacks on electricity installations in the country? In line with the government’s policy thrust on the citing of power generation plants close to energy sources to reduce their vulnerability to vandalism and militant’s attacks, NERC has developed a framework, the ‘Bulk Procurement Regulation’ which encourages investors to cite their power plant close to the source of fuel. The benchmark electricity tariff in the NERC’s electricity tariff model (MYTO) are derived based on certain indices such as proximity of power plants to sources of energy and thus only prudently located power plants can make money under the Commission’s framework. Furthermore, the Commission developed power plants citing guideline which is in line with the initiative of the minister of power to develop investors guide. This is a very good initiative that would change the landscape of the power sector for a more efficient, stable and reliable power network. Would you talk about NERC’s recent partnerships with the ECN and SON? The Commission’s partnership with the Standard Organisation of Nigeria (SON), Energy Commission of Nigeria (ECN), Rural Electrification Agency (REA), National Orientation Agency (NOA) and NESRA is aimed at building an inter-agency energy efficiency implementation committee that would harmonise the various institutions’ programs on optimising energy usage, so that the country can have a more robust program using demand side management. At NERC, we have done a lot, including developing an energy efficiency framework, partnership with SON on a proposed energy efficiency rating labelling for all electrical appliances and equipment manufactured or imported into the country so that consumers can make informed choices and get value for money. Above all, we plan to get the support of other government institutions to ban the importation and manufacturing of such high Continued on page 35
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T H I S D AY • WEDNESDAY, MAY 25 2016
BUSINESSWORLD
INSURANCE
Insurance Industry Maintains Steady Growth in Three Years Ebere Nwoji The Nigerian insurance industry, has in the past three years (2012 to 2014), maintained a progressive track in its overall performance as the industry’s assets within the period has continued to show significant growth from N646.635 billion in 2012, to N794?.680 billion in 2013 and N838.547 billion in 2014. The industry’s gross premium for the period also maintained a steady growth track from N247.587 billion in 2012, to N267.835 billion in 2013 to N307.507 billion in 2014. Similarly, the industry’s
shareholders fund for the period grew from N2293.151 billion in 2012 to N267.835 in 2013 to hit N 349.374 in 2014. Globally, the industry, occupied 58th position in 2012, maintained the same position in 2013 but in 2014, it was ranked the 61st industry in the global committee of insurance industries. Disclosing this recently at the insurance forum, organised by the Access Bank in Lagos, Director General of Nigeria Insurers Association, the umbrella body of Insurance Underwriters Nigeria, Mr. Sunday Thomas said the industry is bedeviled
with myriads of challenges. He however said despite these challenges, the insurance sector is known to contribute to economic growth in the following different ways: Promotion of financial stability and reduction of anxiety among economy operators, minimising government expenditure on aids and relieves. He also said the industry has the capacity to facilitate trade and commerce; mobilise savings, manage risks efficiently, create jobs and reduces poverty as well as fosters a more efficient capital allocation. In terms of individual com-
pany’s performance, Thomas said 55% of the combined market premium in the industry was produced by companies in the top 10 in 2014. He further said the contribution of Life portfolio to the market premium is on the increase having risen to 37% in 2014. “There is the growing interest in Takaful and Micro insurance businesses; Increase in public awareness of insurance policy initiatives; Technology is influencing product distribution Regulatory pressure and oversight is on the increase Price war as competitive
device is still largely deployed to bid for businesses,” he stated. He however said the largely untapped market within the industry creates opportunities. According to him, the insurance industry in Nigeria presents a lot of growth opportunities due to the low insurance penetration. He suggested that attention should be given more to the development of the retail market while waiting for corporate accounts’ rebound. Speaking further on the opportunities in the industry, Thomas sated: “Insurance seem to have become investors
delight given the difficulty in foreign remittances, it is expected that compliance with local content laws will increase. Highlighting some of the challenges of the industry, Thomas stated: “Public patronage of the insurance industry is yet to reach the desired level notwithstanding the various legislations enacted to promote patronage. “Inadequate enforcement of compulsory insurances; failure by the government to lead by example inadequate budgetary provisions for the insurance of government assets as well as under utilisation of capacity in the real sector.
New ILAN President Lists Key Priority Areas Ebere Nwoji The new President of Institute of Loss Adjusters of Nigeria (ILAN) Ralph Opara, at his investiture as the 10th president of the statute said his tenure will be preoccupied by four key tasks aimed at improving the welfare of the institute and its members. These, he said include training of loss adjusters; establishment of the institute by an Act of the National Assembly; improving on the relationship with other arms of the insurance industry and establishment of a reference library in loss adjusting and related disciplines. Opara said in pursuing the above projects, he also hopes to build on the strides made by his predecessors. According to him, his administration would oil the relationship between the institute and the National Insurance Commission (NAICOM), since it is obvious that the institute cannot make enough progress without the support of the industry’s regulator. On relationship with other arms of the industry, he maintained that 90 per cent of the businesses undertaken by loss adjusters come from the underwriters; hence, the relationship will be enhanced. He noted that the same hands of fellowship would be extended to the brokers; agents and leadership of the Chartered Insurance Institute of Nigeria (CIIN). “I have had cause to visit
the library of a few educational institutions that offer insurance and related courses and it is lamentable that there are virtually no books on insurance on their library shelves. If that is so for insurance, what then for loss adjusting that is relatively unknown. During my tenure, I intend to improve on the quantity and quality of books in ILAN library on various disciplines that are of relevance to insurance,” he said. He disclosed that ILAN is already discussing with the Chartered Institute of Loss Adjusting (CILA) of the United Kingdom on the library project, adding that he hopes that by the end of his tenure in 2017, there would have been sufficient reference books to attract the interest of academic researchers and journalists. Earlier, the chairman of the event, Chief P. C. Akujobi, lauded members of the institute for conducting themselves well in executing their businesses. He urged the President to continue on the foundation put in place by his predecessors. Executive Director, Leadway Assurance Limited, Adetola Adegbayi, who delivered the investiture paper, entitled: ‘The Role of Loss Adjusters within a Challenging Economy and Insurance Environment’, urged loss adjusters to go beyond their duties to educate the public on the need for insurance. She noted that the adjusting business would thrive when more people embrace insurance.
YOU ARE CERTIFIED
L-R: Head Business Development, FUG Pensions, Hamisu Bala; a Representative, International Standards Organisation, (ISO), Babatunde Ajayi; General Manager/Head of Investment FUG Pensions, Ngozi Chuks-Okeke; Managing Director/CEO FUG Pensions, Usman B. Suleiman; Head, Information Technology, Chdi Egbujor; Company Secretary/Legal Adviser, Habib Daranijo and ISO Representative, Olanrewaju Akindele at the presentation of ISO 9001/2008 Certification to FUG Pension in Lagos… recently
Continental Re Boss Counsels Business Operators on Use of Local Solutions Ebere Nwoji The Group Managing Director, Continental Reinsurance Plc, Dr. Femi Oyetunji, has advised business operators in Nigeria to utilise more of African home grown solutions and local potential rather than foreign methods. Oyetunji who stated this during the third Chief Executive Officers’ summit for African insurance business
operators sponsored by his Company in Eden Island, Seychelles said Africa can develop better by utilising its home grown solutions. Addressing delegates from different African countries who attended the summit which has the theme, ‘Navigating through global headwinds, Oyetunji stated, “I do not think it is by repacking products or structures borrowed from Europe or
China that will change Africa, I think we must come up with African thoughts, principles and culture to transform our countries,” he said. According to him, the continent is blessed with huge potential needed for its growth and development. The Continental Reinsurance boss said that his company would continually create steps to address those challenges facing the insurance
sector. “I strongly believe that we will not get the inspiration from outside but one thing we will continue to do in Continental Re is that we are focusing on bringing back talent from the diaspora and this is one of the things we want to encourage”, he said. He expressed the company’s commitment to continue to support underwriters and ensure capacity development
CPS: PenCom Drags Non -remitting Employers to Court The National Pension Commission, (PenCom) said it has dragged about 243 employers who failed to remit outstanding pension contributions of their employees under the Contributory Pension Scheme (CPS) as at 2014 to Court. The commission said penalties have been established against the employers, adding that they are now at different stages of prosecution at the National Industrial Court. The commission disclosed this in a memorandum it submitted to
the House Committee on Pensions. It said it has approached the Economic and Financial Crimes Commission (EFCC) to prosecute employers that victimise employees for blowing whistle on non-remittances of their pension contributions. PenCom, also said it has been informed about a worrisome development where companies deducting pension contributions from the emoluments of their employees and not remitting same. “The employees often initiate investigations into the pension
liabilities of companies by way of complaints. However, instances abound where complaints of this nature gravely expose the employee to loss of job and an ultimate price for whistle blowing on ground of the perpetuated illegalities of their employers. “The Commission views this as a financial crime and has accordingly approached the EFCC to collaborate with it to address this situation.” The Commission noted that employers that fail to remit outstanding pension contribu-
tions and established penalties are further approached for civil compliance through administrative mechanisms as set out in the Regime of Sanctions of the Commission, adding that the sanction regime include and are not limited to the issuance of demand letters, letters of warnings, letters of caution and outright sanctions. In the memorandum, PenCom said on its part, its efforts at recovery are not without unpleasant experiences, stressing that there abound situations where officers
of the Commission and the Recovery Agents are accosted with hostility in the conduct of their assignments. It noted that oftentimes, its officers are not assisted with relevant information and that attempts to directly intervene often elicit no responses until litigation is commenced. “Some organisations often insinuate grand collusion to defraud them of the determined sums meant for their employees. Some of the organisations lay claim to alleged witch-hunt when
prosecuted for non-compliance,” it added. It noted that the obligation for the remittance of pension contributions under the CPS is provided under Section 11 of the PRA, 2014., adding the Act mandates the employer to deduct at source, the monthly contribution of the employee not later than seven days from the day of payment of his salary and remit same to the Pension Fund Custodian (PFC) specified by the employee’s Pension Fund Administrator (PFA).
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Port Harcourt Disco: Why MDAs Debt Must be Paid Ejiofor Alike The Port Harcourt Electricity Distribution Company (PHED) has said that payment of outstanding debt by government’s ministries, departments and agencies (MDAs) is of paramount importance if the electricity supply industry is to survive in Nigeria. The company said the country’s electricity industry was in dire straits due to huge unpaid debt and this informed its recent decision to publish disconnection notices to all MDAs indebted to it.
The Chief Executive Officer of the company, Mr. Jay McCoskey reiterated in a statement at the weekend that the refusal of MDAs to pay their long-standing debts represented the biggest worry of the distribution companies in the country. According to him, distribution companies were already grappling with too many issues such that adding MDAs would constitute a burden too big for the industry to bear. “As a distribution company, PHED inherited a weak network, a relatively small
customer base compared to the population, massive electricity theft and several other social ills related to electricity supply. For MDAs therefore to join these barrage of problems by continuously refusing bills payment is like a death sentence to the industry,” he explained. McCoskey added that given the huge revenue shortfall that PHED like other distribution companies were experiencing, mass disconnection would have to be done to force a change in the payment habits of consumers. “We have issued disconnec-
tion notices to all MDAs while at the same time engaging all other indebted customers to ensure that they paid their bills. The industry no longer runs on government subvention,” he said. McCoskey said further that there would be marked improvement in service delivery once there were better collections from customers, especially MDAs, adding that PHED had already demonstrated this by recent initiatives that it had embarked upon. “Our goal is to provide our customers reliable service in terms of power supply and
overall customer experience. That is why we recently launched a 24x7 call centre and invested heavily in several building commercial lines that provide dedicated power to commercial users. We believe that by giving power to companies, factories and industrial outfits, such organisations will be able to continue to produce their goods and offer services competitively and keep people employed. We hope that we will get government support through prompt payment of bills and historical debts by MDAs,” he explained.
Port Harcourt Disco, which operates in Akwa Ibom, Bayelsa, Cross River and Rivers states, is owed N6.8 billion by government establishments - comprising ministries and departments, military formations, and security agencies. Other distribution companies are being owed as follows: Abuja Disco – N18.6 billion, Eko Disco – N8.6 billion, Kaduna – N8.2 billion, Enugu- N7.2 billion, Ibadan- N6.8 billion, Ikeja- N5.9 billion, Benin – N5.8 billion, Jos – N6.5 billion, Yola – N2.4 billion and Kano – N1.2 billion.
Cummins Introduces New High Efficiency Osprey Engine into Nigeria Ejiofor Alike Cummins Energy Solutions Nigeria (CESN), the official Cummins Nigeria Gas Product distributor and after- market dealer, has officially launched the new 1540 KW high efficiency Osprey gas generator in the country. According to the company, much research and development has gone into the new Osprey engine, which is one of the most efficient engines on the global market –delivering up to 44 per cent electrical efficiency. In waste heat recovery applications, the total system efficiency can climb to 84 per cent. Chairman of Cummins Power Generation Nigeria, Deepak Khilnani, stated “we are excited about the Osprey’s application in IPP projects and ability to further drive both reliable and cost effective power solutions.” Cummins was the early mover into the Nigerian gas generator market, installing the first engine in 2003. “The Osprey, along with our existing product line, now gives us an added ability to provide our customers with a greater choice of generating solutions, tailor made to provide the most efficient and cost saving solution for their business,” Cummins Energy Solutions Nigeria
General Manager said Graham Christie . The majority of private industries in Nigeria today operate on diesel generators for their power requirements due the unavailability of natural gas. However the rate of switching to natural gas generators is very fast as both the pipeline infrastructure is widening and awareness of compressed natural gas (CNG) is growing in Nigeria. Analysts forecast that natural gas fired generation is likely to dominate the market given the clear financial savings. Natural gas fired power generation is approximately 40 per cent cheaper than diesel based generation. Moreover, energy comprises up to 35 per cent to 40 per cent of heavy manufacturer’s total operating cost, significantly impacting competitiveness and industrial growth. Besides simply the cost saving, there are significant environmental benefits to operating on natural gas such as reduced carbon and nitrogen emissions. As part of the global efforts to reduce greenhouse gas (GHG) emission and noise pollution, Cummins West Africa Limited (CWAL) had flooded the Nigerian market with low emission and noise compliant generators.
Bayer’s $62bn Monsanto Bid Raises Alarm on Final Price Bayer AG offered $62 billion to buy Monsanto Co., deepening investor concern that it will strain its finances as it seeks to become the world’s biggest seller of seeds and farm chemicals. The German company on Monday said it had told Monsanto it’s willing to pay $122 a share in cash, reports Bloomberg. com. Bayer’s stock dropped as much as 6 percent, extending losses since the potential deal was first revealed. Monsanto shares posted muted gains, rising 4.9 percent to $106.45 in New York trading, signaling that investors remain skeptical about the deal. “I don’t think Monsanto will accept” Bayer’s proposal, said Andrea Williams, a fund
manager at Royal London Asset Management Co. “The danger is that you start then having discussions about how you are going to fund a higher offer, because they are already stretching the balance sheet.” Bayer AG’s proposed $62 billion purchase of seed maker Monsanto Co. could mean the end of one of the most derided names in corporate history. As it has with earlier takeovers, Bayer would probably abandon the target’s brand name should the deal go through, according to a person familiar with the matter. Bayer no longer uses the Schering AG name after buying the company for about $22 billion in 2006.
SUPPORTING AGRIC REVOLUTION
R-L: The President, Poultry Association of Nigeria (PAN), Dr. Ayoola Oduntan; Minister of State for Agriculture, Senator Heineken Lokpobiri; Chairman of PAN, Lagos State Chapter, Prince Adetoyi Olabode and Director General of PAN, Onallo Akpa during the fourth edition of PAN annual summit held in Lagos...recently
FG Urged to Invest in AGOA to Improve Export Ugo Aliogo The Nigeria American Chamber of Commerce (NACC) has called on the federal government to fully key into the African Growth and Opportunity Act (AGOA) initiative in order to improve export and boost economic growth. The President, NigeriaAmerican Chamber of Commerce (NACC), Chief Olabintan Famutimi, disclosed this weekend during a strategic conference in Lagos, organised by the NigeriaAmerican Chamber of Commerce in collaboration with United States Agency International Development (USAID), Nigeria Export Promotion Council (NEPC) West African Trade and Investment HUB and Nigeria Expanded Trade and Transport (NEXTT). He stated that in May 2000, the US Congress approved the
AGOA act in order to assist the economic growth objectives of sub-Saharan Africa through duty waivers on more than 6,400 products exported to the US. Famutimi explained that according to the National Bureau of Statistics (NBS), in 2015 the country recorded the lowest exports in 3 years, adding that the country’s value for export declined from N16,304 billion in 2014 to N9,728.8 billion in the fourth quarter of 2015, “that is a 40.3 percent decline.” He noted that petroleum products has continued to account for the largest portion of US AGOA imports with a 69 percent share of overall AGOA imports in 2014, “in the same year, US imports decreased (mostly in oil) from Nigeria by 67 percent.” The NACC Chief stressed that in understanding the reason for
this downward spiral as attributable to the decline in US import of merchandise associated with oil; it should also be understood that there is a need to break the jinx of Nigeria’s dependence on oil which is “the key foreign exchange earner of the economy.” Famutimi added: “In 2014, U.S AGOA imports totalled $14.2 billion, 47 percent less than the previous year, mainly due to a 55 percent decrease in petroleum product imports. With these fuel products excluded, AGOA imports almost exclusively dominated by raw materials were $ 4.4 billion, decreasing by 10 percent as compared to 2013. “After completing its initial 15-year period of validity, AGOA was on 29 June 2015 extended by a further 10 years to 2025. The US has graciously given us another 10 years to pump up
our exports under AGOA and improve regional trade as well. Since its passage in 2000, AGOA has generated about 350,000 direct jobs and 1,000,000 indirect jobs in Sub-Saharan Africa. AGOA can create more than 1,000,000 direct jobs in Nigeria alone in few years if we get our act together. “With the 10-year extension, we can indeed continue to take advantage of the duty-free status afforded African goods entering the American market under the AGOA and investors can plan for the future, confident that AGOA will be in place until at least September 2025. “This sensitisation programme is only one of several steps in that direction. Through public-private partnership, we must continue to find solutions to constraints to bilateral trade and commerce initiatives such as AGOA.”
Jos Disco to Supply Meters to Consumers Who Paid Outstanding Bills Segun Awofadeji in Bauchi The Jos Electricity Distribution (JED) Company has said that only consumers who clear their outstanding bills can enjoy the facility. The JED company had sometimes in 2015, during a stakeholders’ meeting at
Sindaba Hotel in Bauchi assured consumers of free pre-paid meters. JED Public Relation Officer, Lubabatu Rabi’u at a Customer Consultative Forum organised by the company, which held in Bauchi said: “Only customers who are willing to settle their outstanding bills would enjoy
the privilege.” Hajiya Lubabatu Rabi’u therefore advised customers of the company to clear their bills and request for free meters to avoid estimated billing. She commended customers of the company in the state for their mutual understanding and support, and urged them
not to relent in paying their electricity bills as and when due. The PRO however warned that the company will not tolerate what she described as energy theft by some unpatriotic citizens who connect to its services illegally from unlawful sources.
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Nigerian Bagged Award in UK’s Global Asian Voice Charity Event A Nigerian and successful entrepreneur based in the United Kingdom, with businesses across Europe, America, Africa and his home country, Nigeria, Mr. Mahmood Ahmaduhas clinched the award for Empowering Local Communities during the Asian Voice Award for rewarding inspiration, innovation and impact oriented companies, individuals and charities around the world. The leading Nigerian entrepreneur was recognised for his technological driven solutions in the United Kingdom and across more than seventeen nations. The Asian Voice Charity Awards powered by Charity Clarity are about rewarding charities that think big and seek to solve the most pressing
social issues of our time, both in Britain and globally. In addition, the awards also reward charities that seek to innovative and strive for excellence whose success is judged by their end results. This on the back UK’s Prime Minister’s comment about Fantastically Nigerians. The night and awards have in attendance the Rt Hon Keith Vaz MP Chairman, Home Affairs Select Committee, CB Patel, Publisher and Editor of Asian Voice, Lord Dolar Popat among others. According to the organisers of the event, “Mahmood Ahmadu is a highly successful entrepreneur, with a reputation as a man of distinction and integrity”. “The first thing you encounter is his disarming
and sublime humility; this is so refreshing for a man who has built a global portfolio of very substantial businesses over the last 25 years. Mr Ahmadu is the Founder and Chief Executive Officer of Online Integrated Solutions Limited. He is a fierce private man with traditional values and a deep spiritual conviction, driven with a passion to build better communities and nations. In recognition of his outstanding contributions, he is a proud recipient of many awards, including the ‘Officer of the Order of the Niger’ (OON) a national honour bestowed on him by the President of Nigeria. Mr. Ahmadu is known for his generosity and supports many charities internationally; he also funds and supports many community initiatives around the
world as he believes strongly in the principle of giving back. Mr. Ahmadu is a dedicated husband and proud father of four children, he lives with his family in London,” the organizers explained. The award was presented by CB Patel in front of more than 300 top British, Asians and African leaders and VIP in Sheraton Hotel, Park Lane, London. His many years of over two decades building impactful solutions in many nations and wholesome character, dedication to work, innovative and developing technologies for Africans and diverse clients is bringing the shy and private Mr Ahmadu to the public arena especially as this award is from a non-Nigerian or African organisation. His companies
in Nigeria have been working behind many innovative and technologically driven platforms for more than ten years. Ahmadu is the first recipient of the Empowering Local Communities for his contributions to local, national and international charitable causes. The publisher of Asian Voice in his speech before the presentation commented on the PM’s fantastically words and praises Ahmadu for his vision and mission in fantastically solving problems and using his companies in changing Africa’s technological challenges. In receiving the award, Ahmadu who was very appreciative and with smiles praised the organisers and the board of committee to the award for believing that there are good and wonderful
Nigerians; and more so for recognising and honouring him with the award. As the organiser said: “We want to showcase charities with the excellence among which operate in Great Britain and globally and given a much needed boost to organisations struggling to get the profile and funding they need to move forward. These awards offer a priceless leg-up to organisations that are delivering practical solutions to present-day problems. The awards are for rewarding charities for progress towards their dreams, regardless of whether they are small or big. So that our generation’s enduring legacy could be to reinvent the whole way humanity thinks about changing things for the better.”
CIS Inaugurates Committees to Drive Activities Eromosele Abiodun In a bid to strengthen the operations of the Chartered Institute of Stockbrokers (CIS), the governing council of the institute has inaugurated 12 committees with 148 members. The committees, which have been specifically set up to drive the activities of the Institute are: Education Committee, Research and Technical Committee, Membership Committee, Finance Committee, Programmes Committee, Continuing Professional Development (CPD) Committee, Board of Fellows, Investigating Panel, Supporting Member Investigators, Disciplinary Tribunal, Nominating Committee, and Presidential Nominating Committee. The committees have a two-year tenure. Addressing the committee members at the inauguration ceremony, the President of CIS, Mr. Oluwaseyi Abe explained that their appointment was the outcome of a careful due diligence conducted by the Council to ensure that people who are fit and proper are given an opportunity to work for the Institute. Abe noted that the Institute had many talents that are willingly ready to drive its array of activities. According to him, the committees’ performance shall be appraised on quarterly basis
based on the implementation of their terms of reference in order to create realistic deliverables. “The Council is of the strong view that the Institute must be developed in order to adequately meet the expectation of its stakeholders in line with the global best practices”, Abe said. He urged the committee members to live up to the expectation as the institute places premium on their activities as pertinent to the growth and development of the Capital Market in general. Responding to the president’s appeal, one of the chairmen, Mr. Albert Okumagba urged all members to support the institute at this trying period of economic development by working round the clock to implement their respective programmes. Okumagba was corroborated by Professor Taiwo Asaolu of Obafemi Awolowo University, Ile-Ife who pledged the determination of the members to live up to expectation. A former Council Member, Mr. Mike Itegboje advised the committee members to always attend meetings and be prepared to contribute meaningfully to the institute’s programmes. According to him, meritorious service at the committee’s level is a pre-condition to becoming a council member of the institute.
Boeing Wins $11.3bn Order for 100 Planes from VietJet Boeing Co. won an order for 100 jets from VietJet Aviation Joint Stock Co., a Vietnamese carrier, in a deal valued at $11.3 billion based on list price, according to a statement from the airline. VietJet signed the agreement on Monday in Hanoi during President Barack Obama’s visit to Vietnam, reports Bloomberg. com. Delivery of the planes will run for four years beginning in
2019 and will help the carrier expand its fleet to 200 by the end of 2023, the company said in a statement. The airline will purchase the Boeing 737 Max 200 planes. The low-cost carrier, which started operations in December of 2011, is seeking to expand in a market that’s grown 20 per cent annually in the last three years, according to the airline.
IMPACTING LIVES
L-R: General Manager, Southern Operations, MTN Nigeria, Mr. Obinna Nweje; Nominator, MTN What Can We Together, Mr. Woke ChiOgbonna, and Director, MTN Foundation, Mr. Reginald Okeya, during an appreciation party for the nominators in Port Harcourt, Rivers State... recently
Peak Milk Takes Campaign to Schools in Ikeja In anticipation of World Milk Day coming up on June 1, 2016; Peak Milk, Nigeria’s’ premium dairy brand, has taken its ‘Art of Milk’ initiative to the next level by engaging some secondary schools in Ikeja and its environs. It was creativity galore when the Brand Team of Peak Milk recently visited Cayley College, Agidingbi and Wellsprings College, Omole Phase II. Students of both schools showed amazing talents as they gave their presentations of prepared meals of breakfast, lunch and dinner - using milk as the main food item. Besides the Brand Team, also present at the event were star actress, Mrs. Sola Sobowale and head chef / MD, We are Food Limited, Mr. Adeniyi Williams who were members of the panel of judges.
For the organisers, the idea was showcasing ingenuity using milk in unconventional cooking practices. Speaking on the initiative, Sobowale said: “Over the years, we have been eating the same kind of food. Milk is one of the essential foods we need. It is not just for Quaker Oats, pap or cornflakes. We have a lot of things we can do with milk and that is why I love the fact that Peak is making us use milk wisely”. For Williams, the ‘Art of Milk’ initiative is very close to his heart and he believes everyone should get involved. “There is so much fun in the kitchen. I believe if you let these kids start cooking at 10, 11 years; by the time they are 18 to 20, I do not see why they can’t be the best in Africa”, he said.
As a food enthusiast, Williams also added that milk is important for all and sundry. “I still drink milk and I am 28. It is a good source of Vitamin D’ phosphorus, calcium and so on. Coming from the point of Western cooking, there are amazing things you can do with milk when cooking and baking - and that is what Peak is showing”. In addition, the competition has helped students and their teachers to try out unbelievable recipes. Mrs. Deborah Oladimeji, the Food and Nutrition teacher of Wellsprings College, it was an exciting challenge. “We went through some recipes and tried to create our own taking into cognisance the period of the meals”, she explained. Their presentation was Sweet potato pancake (made
with milk) and beef kebabs (for breakfast); chicken egusi soup with vegetable and milk semovita (lunch) and milk rice with crayfish and pepper for dinner. To enter the competition, schools in Lagos would enter in recipes using milk to peakmilkng@gmail.com. Ten finalists will be chosen from which the winning school would emerge on June 1st. The grand prize is a branded LED screen while the second and third prizes would be airconditioning units for six and three classrooms respectively. Friesland Campina WAMCO Nigeria produces Peak evaporated and powdered milk which contain essential vitamins and minerals. The range now includes evaporated (liquid) milk in sachets and smaller pocket-
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‘Brexit May Spark Yearlong Recession’ The U.K. government issued its starkest warning yet about the dangers of a vote to leave the European Union in next month’s referendum, saying it risks causing a yearlong recession, sparking a decline in the pound and costing hundreds of thousands of jobs. Gross domestic product in 2018 would be 3.6 percentage points lower than the current forecast, which is for a 4.3 per cent increase, the Treasury said Monday in a document assessing the short-term economic consequences of a so-called Brexit. That’s under a “shock scenario” that the Treasury described as “cautious.” Under a “severe shock” scenario, GDP would be 6 percentage points lower than otherwise, and house prices would fall about 10 percent from current levels, reports Bloomberg.com.
“With exactly one month to go to the referendum, the British people must ask themselves this question: can we knowingly vote for a recession?” Chancellor of the Exchequer George Osborne said in a speech at the headquarters of home-improvement chain B&Q in Eastleigh, southern England. “Does Britain really want this DIY recession?” The chancellor was flanked by Prime Minister David Cameron. With the Conservative Party split down the middle and both men’s careers on the line, they are determined to emphasize the dangers of a vote to leave in the June 23 referendum. In November, Cameron offered a more optimistic view, saying that Britain was a “thriving country” and “whether we could be successful outside the European Union is not
the question.” While an analysis of the longterm impacts of Brexit published earlier in the month offered three scenarios, this one omitted the most optimistic, in which the U.K. retained its membership of the European Economic Area. The assessment is partly based on the assumption that after a vote to leave, people would adjust their expectations and spending in line with the Treasury’s own, pessimistic, forecast that they would be “permanently poorer.” Iain Duncan Smith, who resigned as work and Pensions Secretary in March, accused the government of focusing only on the negatives. “They have today chosen only to produce the downside,” he said. “That makes this report categorically unfair and biased.” Better Capital LLP Chairman
Jon Moulton, Energy Minister Andrea Leadsom and Capital Economics Executive Chairman Roger Bootle joined more than 30 economists, politicians and business leaders in signing a statement saying the Treasury has consistently got its forecasts wrong. “The real risk to the economy is to stay tied to the failing single currency with an obligation to pay its bills,” they wrote in the statement, e-mailed by the official Vote Leave campaign. “If we vote ‘Leave,’ we will substantially cut the currentaccount deficit and thus will be able to stabilise the economy. The same old scare stories simply don’t wash.” Under the least severe of the two scenarios outlined in the Treasury analysis, the pound will fall by 12 percent in the two years following a vote
to leave, pushing up annual household shopping bills by 220 pounds ($320) over the same period. About 520,000 jobs would be lost, real wages would decline by 2.8 percent and inflation would increase by 2.3 percentage points. Under the worse-case scenario, 820,000 jobs would be lost, real wages would decline by 4 percent and inflation would rise by 2.7 percentage points. Not even that represented the most pessimistic scenario. If post-Brexit negotiations took more than two years to conclude, or if the outcome was less favorable than expected, the economy “could be subject to repeated and persistent rises in uncertainty which would depress further economic prospects,” according to the Treasury document. The Treasury said its latest
analysis was reviewed by former BOE Deputy Governor Charlie Bean. It’s the department’s second in-depth study into the consequences of a Brexit, after saying last month that a vote to leave would cause decades of economic pain, knocking 6 percent off GDP by 2030. The emphasis on risk is aimed at pushing undecided voters -- estimated in polls to make up as much as a quarter of the electorate -- into the “Remain” camp. Recent polling has suggested that the “Leave” side is losing ground. An Opinium poll published May 21 found “Remain” on 44 percent and “Leave”’ on 40 percent. The poll was conducted online, something that has tended to produce better results for “Leave.” Gambling website Betfair put the chance of Brexit at 22 percent.
AKAH: NERC’S REGULATORY COMPETENCE STILL INTACT energy consuming electrical appliances and equipment. Empirical evidence has shown that a well-articulated and implemented energy efficiency program do reduce electricity bill by at least 30 per cent. This translates to an increase in electricity access by almost the same rate. It is a waste of money and less effective if each government agency continues to embark on demand side management on its own. Are there other deliverables that NERC is
aiming to take away from these partnerships? In line with our mandate as enshrined in the EPSRA 2005 and having regards to the need to optimise the limited financial resources, we decided to embark on this plan of getting all other government institutions with similar responsibilities on driving energy efficiency to pull our resources together for the overall interest of the electricity consumers in Nigeria. A similar exercise was done in Ghana with significant rate of success.
Nigeria was recently upgraded by the Energy Regulators Regional Association (ERRA) to a full membership in Poland, what’s in this for it? The association’s main objective is to increase exchange of information and experience among its members and to expand access to energy regulatory experience around the world. It is also an avenue to attract foreign investors into the Nigerian power sector. Other countries that were elected as members of the governing council, Presidium alongside
with myself representing Nigeria include Turkey, Latvia, Estonia, Oman, Romania and Hungary. Nigeria’s membership of ERRA has been beneficial in terms of exchange of experience with other regulatory agencies and trainings, internship and knowledge sharing among member states. The body has on a number of occasions conducted trainings and seminars within and outside the country for staff of the Commission in areas of managing emerging privatised energy sector.
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EDUCATION Ensuring that no Anambra Child is Left Behind In line with the desire of the Anambra State Government to be among the three top states in Nigeria with the lowest illiteracy rate, the Commissioner for Education, Professor Kate Omenugha shared with Uchechukwu Nnaike the state’s efforts to ensure that no child is left behind, among other issues Anambra State has over the years been known for the high rate of boy-child drop-out because of the commercial activities in cities like Onitsha and Nnewi, but surprisingly, the Commissioner for Education Professor Kate Omenugha revealed that the state also has its share of girl-child drop-out in the riverine areas were girls are married off at the age of 12 and less. The commissioner painted a gloomy picture of those riverine communities, which she said are mostly farmers and place little value to education. She however said the state government is working assiduously to reverse the trend as several policies have been formulated to get the drop-outs enrolled in schools and provide lifelong skills that will equip the state to become one of the three top states with the lowest illiteracy rate. “We promised ‘umu akwukwo ndi Anambra’ that we will give them education that will be comparable to any in the world. To be able to do that, we need to form a policy that no child is to be left behind; we need to give our students lifelong skills; we need to re-strategise and transform our education from the one where they do rote learning to the one that is more practical, where our students will begin to have what we call education for employment and where we need to have a bridge between schools and industries.” To ensure that no child is left behind, she said Governor Willie Obiano made education tuition free no matter the school, whether inclusive or special school. The government also renovated dilapidated structure in the special schools and integrated the students. For those riverine areas, she said the governor started paying some teachers 20 per cent of their basic salary as incentives for then to be retained in those areas. “We do what we call teacher engagement whereby I as the commissioner representing the governor will go to those areas, I travel by boat to the place and some of the people speak Igala so I will need an interpreter to communicate with them. “These areas have been neglected over the years, but now we are refocusing our minds to them and the girl-child that is too disadvantaged in those areas we have taken interest in them. We have some consultants that have done a lot of research on those areas and they are going to present the report by the end of June, to determine the kind of intervention we are going to do so that we can integrate the girl-child into school.” To attract the boy-child, she said the government now builds a school in any market is constructing “to catch the boy child that has dropped out of school that is probably in the market as an apprentice. Most importantly, we are trying to strengthen our children.” According to the commissioner, having realised that ICT is key to providing education that will be comparable to any in the world, the government needed teachers to drive the ICT awareness, but regretted that when she assumed office, she noticed that teachers were kind of lackadaisical to technology. Though the previous administration had made huge investments in education in form of ICT, technology, distribution of computers to schools, with some of the schools have up to 200 computers depending on the number of students; some have 15 or 20 depending on the number, the computers were not in use. “The state government had formed some partnership with Microsoft and they had the Microsoft academy in place whereby we have access to vouchers that will make the students and teachers to have Microsoft certification. We saw a government that has good intention of integrating technology in education. When we came in one of the things we noticed was that the vouchers were about to expire and none had been used. “What we did was to make some policy thrust because some of the laptops were beginning to gather dust; some of them had virus attacks, so we began to think of a way to make our
Omenugha
teachers able to use the laptops. So we started an aggressive campaign and that came with some policy statements for example we told the teachers that they won’t get promotion unless they are ICT compliant; also no one will be promoted to the post of a principal unless they can drive ICT. “We talked about the ‘one teacher one laptop’ policy where every teacher, even though it is a voluntary scheme, but teachers are made to understand that they must have a computer. When we started the ‘one teacher one laptop’ policy it was like a mayhem, people were criticising me, until other state governments started calling my governor to find out what we are doing and that gave me a kind of plus. “We also did a lot of aggressive campaign and oral persuasion and made the teachers to understand that it is important for teachers to key into 21st century technology and they have accepted the policy, even though the high exchange rate is posing a problem. “We began to put training component in our school calendar. For the secondary schools that already have laptops distributed and with the train the trainer session by Microsoft were about 52 ICT teachers were trained who will in turn train others. With the teachers that were trained, we started an aggressive training. It didn’t matter to us that about three teachers were sharing a laptop. The important thing is that teachers are beginning to understand the need to work with it. “Many of them touched the laptop for the first time, many of the were so elated when they saw the laptop booting; many of them felt that something new was happening, even their children were involved, happy that their parents can now operate computers. When I look back from where we started and where we are now, it has been a slow progress, but there is progress. “Currently, 30 per cent of our teachers have Microsoft certification, what is means is that the global competitiveness is promising, we are getting there; what it also means is that the lackadaisical attitude of teachers towards technology is waning, we are getting more converts, it is not an easy road but I know we will get there.” On the distinguishing feature of the state
education sector, Omenugha said it is global competition, “it is very important; that is what we try to do and to make our teachers and workers responsible and responsive. We have excelled in the areas of infrastructure development; we have a partnership with the mission which is working very well. The governor disbursed some funds to the catholic and Anglican mission depending on the number of schools they have, for them to renovate the schools that were handed over to them. The rest of the money will be used for our schools. Anambra State last year won the best senior secondary school in Nigeria and the second best primary school.” She disclosed that the current debate champion in Nigeria is from Anambra state. “For two consecutive years, in the inter-school debate Anambra state has come first. The students went to Singapore and defeated other contestants to emerge the best team and best speaker. What we are doing is that we are trying to imbue them with a lot of courage and demystify science and technology for them so that they will begin to follow the 21st century.” Asked if the impressive performance of the students can be attributed to ICT, Omenugha said: “It is partly that because during the debate competition, sometimes the students are given something to research on and they find themselves on the phones and other devices trying to get out information. If they are not technology savvy, it would have been difficult for them to do that because they will be given less than an hour to go and research a topic and come back and speak on that topic. “Also, critical thinking, analytical thinking are very crucial to what they are doing; most importantly too, we are making the students confident by making them believe in themselves that they can do these things on their own. Each time Anambra students go to any competition, they will have it in their minds that they have to make an impact everywhere they go and everyone they meet and they want to be role models. We keep on drilling them on these because education is about ideology.” Asked the extent the state has gone in the area of technical and vocational education, the commissioner said: “That is the area we have made a lot of impact. When Obiano came into office, we met 11 technical colleges, none of them had accreditation, the one that had accreditation, its
accreditation expired in 2013 so by the time we came in 2014, none of the colleges had accreditation, some of them were dilapidated and we had a set of teachers that had almost lost it in terms of motivation and inspiration. “The first thing we did when we started work in July 2014 was to send 23 of the technical college teachers to Singapore to learn the Singaporian model of technical and vocational education. They couldn’t believe that we could spend such an amount of money for them to go on a study tour and visit if the schools in Singapore, so they came back energised we divided them into groups and we were able to provide the document that has the mapping out of the step by step activities that we need to do to be able to re-energise and revamp technical colleges; to be able to give the teachers the desired local and international training; and to be able to get the courses accredited. “So with the support of the World Bank we began to re-strategise on how we can move the technical colleges forward. So after the training which was funded through the World Bank STEPID programme, we redesigned our curriculum to be geared towards education for employment that is what we are working at. We also started the bridge programme where we thought of how to close the disconnect between the technical colleges and the industries so we need to begin to train children that will fit into the industries, the middle level human resources capacity building or manpower development. She said the technical college witnessed an increased population when the governor awarded free tuition to all technical college students NCC one to NCC three. “That boomed the technical colleges because one of the greatest challenges we found out was the thinking of our people that those who go to technical colleges are second class. So we said if we make technical colleges beautiful, a lot of people will begin to go there and that is what is happening now. “We followed up with the partnerships we have with the technical colleges and the industries, we started with Innoson Motors where the governor signed an MoU with the company, students of 10 of the 11 colleges that do auto mechanic were going there on a daily basis to be able to learn hands-on experience, that again made a lot of students to start coming school. “We are moving on to construction industry, forming partnership with the artisans, even those who do furniture making, those who tiling, plastering, those are the people we are working with, even those that work in their homes, we are not looking for the big companies like Innoson, we are looking for the people who have the practical experience, which the students can go and get themselves exposed to and then with their intellect they can fine tune and do better. “As a fall out of the partnership with Innoson Motors, we opened a vehicle body building maintenance workshop at the Nigerian Science and Technical College, Nnewi, we opened the catering craft department too and we invited the NBTE to come in December last year, they came for resource verification so that they could find out whether we have enough things to be accredited and surprisingly in April 2016, we got a letter from them that they have given us initial accreditation, they were supposed to come back for another accreditation but the state-of-the-art equipment they found in the vehicle body building maintenance and the catering craft was outstanding and they gave us interim accreditation.” She expressed delight that companies are now employing graduates of its technical colleges, saying “it is exciting to me because it shows that our products are good; and the hands-on experience we are giving the students is paying off; and the zero unemployment which we want to have in Anambra is beginning to come to fruition because people can just be taken immediately they finish school and go into the job market, that is good for us.”
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T H I S D AY • WEDNESDAY, MAY 25, 2016
EDUCATION
Kogi Poly Rector Reads Riot Act to Certificate Forgers Yekini Jimoh in Lokoja The Rector, Kogi State Polytechnic, Lokoja, Alhaji Isah Muhammed, has warned certificate forgers to stay clear from the institution, adding that those holding forged certificates of the institution but claim to have completed any of its programmes should immediately turn them in or face the full consequence that go with such criminal act. The rector, who gave the warning during a press conference at
the polytechnic auditorium recently, also described all those claiming to be awaiting certificates of the institution years after graduation as ghost students who never passed through the system. The rector was reacting to the information that some persons used forged certificates of the institution to secure civil service job in the state as revealed by the ongoing staff audit. While defending the integrity of the institution’s certificates,
he said “any of our products that is not performing, I can tell you he is not from Kogi State Polytechnic because right now this staff audit that is going on has revealed so many things.” He advised students with carry-over they have written not to conclude that automatically they have passed. “That somebody graduated in 2003 and is yet to get his certificate, this is not true. If you have a carry-over in 2003 and you did not pass it, is it possible to graduate in 2016?
“We keep on telling them if you have carry-over and you came to write it come back to see the result because it is an exam that has to do with probability. “If you investigate that student he has something in his cupboard; he must have had one or two carry-overs that he or she has not written. If he graduated after 2002 and he has not complained, it is obvious he was not a student.” According to Muhammed,
experience has shown that most of the OND graduates of the institution who went to other schools for their HND always excelled; that he said is the only yardstick to measure the integrity of the polytechnic’s certificates. He explained that most staff’s children are enrolled in the institution because of their faith in its certificates. “As a rector I still teach because I cannot compromise the little experience I have because I want to transfer it. I have been
encouraging my colleagues to do their best because our major duty is to contribute to humanity. “When I get to class I tell them that I am not teaching them to pass but to get the knowledge so that they also can be of use to future generations.” He said the Treasury Single Account (TSA) policy of government will not be practicable in tertiary institutions giving the peculiarity in running their affairs.
Vodacom Trains, Inspires Students with Laptop, Mentorship Offer Peace Obi The Vodacom Business Nigeria has trained 25 female students of Clemmy High School Agodo-Egbe, Lagos on Internet of Things (IoT) as part of its support for the Girls in ICT Programme. The training, which among others, was aimed at encouraging more female students to choose a career in ICT, also provided the students with first-hand experience of new technologies that are driving the world’s largest economy which Nigeria is one of them. These include M2M, networking, network and cloud, satellite and cloud computing, among others. Addressing the students, the Managing Director, Vodacom Business Nigeria, Mr. Lanre Kolade, urged them to believe in themselves, adding that they can be anything they want to be if only can develop the interest and put their heart to it. While stressing that the choice of studying ICT depends largely on students’ interest in science subjects at the secondary school level, the MD advised them not be intimidated by physics, chemistry and biology, but that they should enjoy the subjects and make them an integral part of their daily lives. “The only thing that is impossible is what you have not set your hearts to do. So work harder, study more and interact with those who know
it better than you do.” On the role of the teacher in students’ choice of ICT in tertiary institution, Kolade said the choice starts with students liking the way the subjects are taught. He urged teachers to be innovative in their teaching, adding that the biggest work in getting more girls to develop interest in ICT lies with the teachers. “Teachers must begin to adopt innovative ways of teaching the subject so that more students, especially females will not only become interested in ICT but choose to work in ICT industries upon completing their studies.” Vodacom Business Nigeria which has over the years through its Power to You project, trained students at all levels of education on the role of ICT extended its CRS project to Clemmy High School after the school emerged winner of app development and quiz competition as part of activities marking the Girls in ICT Day celebration organised by e-Business Life. The winners of the competition, Miss Chidera Onyekuru and Miss Peace Agboola both SS2 students were presented with brand new laptops and mentorship offer by Kolade for their brilliance and for Agboola’s ingenious development of a mobile app she named ‘Talk to me’. The app reads out loud text on a mobile device by waving the device with your hands.
ONOSODE FOUNDATION LIFTS LBS
L-R: A member, Onosode family, Mr. Spencer Onosode; Director, Advancement, Lagos Business School (LBS), Olamide Ibitoye; Chairman, Gamaliel and Susan Onosode Foundation, Jacob Ajekibe; Secretary of the foundation ,Toyin Olanrewaju; Mr. Ese Onosode; Dean, LBS, Enase Okonedo; and the Vice-Chancellor, Pan-Atlantic University, Juan Elegido, at the official presentation of the N100 million donated by the Onosodes to the school... recently
Nigerian Army School of Education to Award Degrees Soon Hammed Shittu in Ilorin The acting Commandant of Nigerian Army Education Corps (NAEC) Brig. General Lawal Abdullahi, has reiterated the commitment of the corps to the ongoing change mantra policy of the present administration in the bid to ensure the development of education sector in the country. To achieve this, he said the Nigerian army authority has concluded arrangement to upgrade the Nigeria Army School of Education located at Sobi barracks, Ilorin, to the status of awarding degree institution so as improve the quality of education of all institutions in its folds.
Speaking at the second quarter stakeholders conference of NAEC held in Ilorin recently, Abdullahi said there was no doubt that the present administration in the country has been up and doing in the task of enhancing the growth of education sector adding that the NAEC would leave no stone unturned at complementing the efforts of the government in the task of developing the sector. “As part of moving NAEC forward, the Nigerian Army will upgrade the Nigeria Army School of Education into awarding degree institution as from next academic session.” The gesture, he said, would provide an avenue for qualified
army officers to seek more knowledge in their intellectual development so as to contribute their quota towards the development of the Nigerian Army. The acting commandant added “the Nigerian Army has also given approval for the establishment of Nigeria Certificate of Education (NCE) at the school, adding that it would provide opportunity for both the civilians, teaching and non-teaching staffs of the command primary and secondary schools to seek more academic qualifications in their chosen career.” He said this would assist the growth of education in the country and thereby assisting the Nigerian Army to contribute their
quota towards the educational advancement of the nation. He used the occasion to distribute instructional materials and computers to command schools in the country to improve the academics of the students. The guest lecturer, Col. Bello Tsoho, enjoined the teachers and students to be up and doing in a bid to move education forward in the country. In his paper titled, ‘Repositioning the NAEC through Self Transformation: The Stakeholders Perceptive’, Tsoho advised the stakeholders in the corps to provide a new avenue that would allow the past leaders of the NAEC to add more values to the education of all and sundry.
Ministry Inaugurates Labour Exchange Centre for Jobless Youths Funmi Ogundare The Lagos State Ministry of Wealth Creation and Employment recently inaugurated the job registration/labour exchange centre, designed to enable jobless youths and artisans get their data captured and a guidance and counsellor to register and guide them through a career path. The programme, held at Ojo Local Government Secretariat, will also enable the government to know the number of graduates and the unemployed in the state. In his remarks, the Commissioner, Mr. Babatunde Durosimi-
Etti, said the centre is expected to be a nexus of exchange between potential employers and the unemployed, adding that the solution to unemployment in the state goes through an inclusive process. “The centre is expected to bring out the unemployed youths and it will be staffed with guidance and counselling officers and we will also encourage the use of online networking because technology is very important especially for those that cannot make their way to the centre.” A director in the ministry, Mrs. Iyabo Bello, said the counsellor at the multimedia centre will take the youths through career
talks to enable them determine where their passion lies, as well as guide them to go for technical or vocational skills training. She said the graduates will be counselled into going into entrepreneurship. “Those who are seeking employment will be taking through employability skills. In the long run, we will have many Lagosians getting something doing in terms of getting paid or being self-employed. We are going to have less social vices; the standard of living of the people will improve the IGR of the state in terms of creation of wealth and employment. They
will be earning money and be able to pay tax, we will also have skilled workforce and generate foreign exchange because we will be talking to the entrepreneurs to be producing what will be exported.” The Chief ExecutivWe Officer of Service City, an online e-commerce platform, Mr. Femi Ogunseinde, said his organisation plans to bring artisans in touch with people and organisations who are looking for high quality service. “We are in the business of changing and transforming lives, one of those things we are trying to achieve is to empower people
with knowledge with tools and processes and allow them to deliver service to comparable standards with their peers in Europe. We intend to do this by leveraging on technology to manage the engagement process of how this people find work, the execution process and the tools they will use to work, as well as the supplies that we will use to do the work.” He said the jobless youths must have the qualifications that will make them to know what it takes to deliver quality service that people will be willing to pay for, adding that they have to know how to position themselves.
“Through the platform, you are guaranteed payment for every service you deliver.” The Executive Secretary, Ojo Local Government Area, Mr. Sikiru Lawal, appealed to youths and residents to guard jealously the infrastructure provided by the government so that more can come to the community. In another development, the ministry presented its scorecard of achievement in the last one year, just as Durosimi-Etti said it would continue to partner organisations that have shared values to harness opportunities that will enable creativity and innovativeness among youths.
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T H I S D AY • WEDNESDAY, MAY 25, 2016
EDUCATION
It’s a Shoe Thing
TEACHERS’ SEMINAR
L-R: The Director, Business School of Netherlands, Nigeria, Mr. Lere Baale; Directors, Chairos School, Lagos, Mr. Buwa Sagay and Mrs. Boumogha Sagay; Senior Pastor Trinity House, Zion Centre, Ituah Ighodalo; and customer-centric professional, Mrs. Odunayo Sanya, during the teachers’ seminar organised by the school in Lagos… recently
FSTC PTA Completes 1,200 Capacity Hostel in 15 Months Uchechukwu Nnaike As part of efforts to alleviate the accommodation challenge of the Federal Science and Technical College (FSTC) Yaba, Lagos, the Parent Teacher Association (PTA) has completed and donated a 1,200-capacity female hostel to the school. The hostel, which was completed within 15 months, was recently inaugurated alongside other projects like: 500 units of two-in-one classroom furniture; 700 units of students’ individualised furniture; and general staff room. Speaking at the event, the PTA Chairperson, Mrs. Oby Igwilo, said the hostel was built because the school is one of the federal unity colleges situated within the heart of Lagos with an increasing student population every session in addition to the inherent challenge of hostel accommodation and struggle for bed space. “Recognising that we are face with this growing hostel accommodation problem, our former Principal, Mrs. Magdalen Nwankwo and her team presented this need already translated into a 1,200 bed space for our students to the association.” She said the project received accelerated and steady progress under the current school management. “Our Director Principal, Rev. Chris Ugorji, who has been a source of encouragement and inspiration to the parents through his transformatory prowess
in the lives of our students endeared himself to the parents and the college community and by his uncommon commitment has made the work much easier.” While highlighting the contributions of the association towards the provision of a conducive learning environment in the school, Igwilo said “the importance of education in a child’s life cannot be overemphasised, we were propelled to embark on this laudable task in spite of all the challenges because we have seen that education in Nigeria can no longer be left in the hands of the federal government alone.” In his remarks, the Minster of State for Education, Prof. Anthony Anwukah, said the speed with which the project was prove that there is progress and harmony between the college management and all stakeholders. “As expected, these projects will bring soccour to the college and alleviate the stress of parents particularly in the area of securing a healthy and conducive learning environment for staff and students. Thus the onus is on the management, staff and students to ensure that these facilities are well preserved and maintained so that future generations will have reasons to look back and thank all who contributed towards these achievements.” While commending the PTA for embarking on the project, the minister
said, “this type of collaboration is what the ministry is expecting from the PTA of all the other federal unity colleges not uncalled for acrimony between college managemaent and PTAs, where there is peace there will be progress.” While reiterating that the Federal Ministry of Education owns and runs the unity colleges, Anwukah regretted that the PTA, which started as a good thing metamorphosed into a trade union thereby holding the administrations of unity colleges to ransom. He hinted that the ministry is trying to again look at the MoU between the PTA and the colleges to streamline the relationship. On his part, the Principal, Rev. Chris Ugorji, highlighted some of the achievements of his administration that assumed duty in August 2014. Despite the achievements, he said the college is still faced with “some very stubborn challenges that require heavy funding if we are to fundamentally revolutionise the institution’s corporate image.” Some of the challenges he said are: densely populated classrooms due to inadequate classrooms; inadequate hostel accommodation; science laboratory is small and grossly inadequate compared to the number of students offering science subjects in external examinations, among other issues.
Lagos Empowers Students with ‘Ready Set Work’ Initiative Funmi Ogundare Final year students of the Lagos State Government-owned tertiary institutions recently converged on the Faculty of Education Hall, Lagos State University (LASU) for the ‘Ready Set Work’ initiative, an entrepreneurship and employability programme aimed at equipping them with critical skills to either become employable or become employers of labour. The capacity building programme, an initiative of the ministry of education, will run for 13 weeks (Saturdays) during the second semester in each of the participating institutions, and will be subdivided into three distinct components, employability, entrepreneurship and general modules. In his remarks, the Special Assistant to the Governor on Education, Mr. Obafela Bank-Olemoh, described the programme as an opportunity for students to develop themselves, adding that within the period of training, business leaders would be there to speak to and inspire the students. He said at the end of it, the best 500 would
get six months internship placements in high ranking corporate organisations. “We live in a generation where you have no excuse to fail, you can’t blame anybody, what you do with your life is your business, you can be what you want to be. So it is up to you to give your best at the organisation. On completion of the tutelage, outstanding participants will earn internship placement at top blue-chip organisations in the state, or win seed funding for successful pitches of their business plan.” He advised them to be punctual for the training, saying that once they are one minute late, the doors would be shut against them and late comers who miss any module might not receive their certificate. The Vice-Chancellor of LASU, Prof. Olarewanju Fagbohun, said the training would avail the students of the opportunity to gain practical skills while they are with the organisation, adding that they would have imbibed work ethics such that when they go to any other place, they would be respected and their degree would have value.
“The short-term expectation is that we want to change the mindset of our students to let them know that the world is very competitive and that you must have the skills if you are going to achieve your goals. The long term expectation is that the state is going to benefit from it; Nigeria too will benefit because it will reduce unemployment problems. These people will now be entrepreneurs and those of them in their work places will be able to add value to their environment.” He commended the state government for choosing LASU for the pilot scheme. Some of the participants told THISDAY that they would embrace the initiative, which would give them an opportunity to get jobs after graduation. A student of the Department of Industrial Relations and Personnel Management, LASU, Miss Olamide Oni argued that the reason why the country produces half-baked graduates is because students are not exposed to sensitisation programmes, adding that students should try and embrace the initiative as it will do them a lot of good.
Your shoes take you there! Therefore they are very important to your achievements. Shoes are an item of clothing. Whatever their style or cost, they are foot wears intended to protect your feet. The human foot contains more bones than any other single part of the body. Shoes comfort your feet as you go about your daily activities. Your feet are vulnerable to environmental hazards such as hot and cold ground; pebbles or sharp rocks; glass fragments, nails, flints etc. Shoes vary in style, complexity, cost, and purpose. Shoes are made from leather, wood, canvas, rubber, plastics and other petro-chemically derived materials. We engage in a variety of activities hence the wide variety of different types of shoes available all over the world. Virtually every shoe is designed for a specific activity. We’ve got: boots, athletic shoes, dress shoes, unisex shoes, dance shoes, orthopedic shoes, and so on. Just as the smells from your clothes add to your total body odour, so does the smell from your shoes add up to your overall body odour. Do you have a body odour? Everyone has a peculiar body odour. Is yours offensive and restricting? Or, is yours inviting and enabling? When you ease off your feet from your shoes, do people quickly pinch their nose and turn away or do they look down and even check out your feet? Smelly feet are caused by a build-up of sweat. Sweat glands give off sweat regularly throughout the day to keep your feet moist and supple. When your feet remain inside your shoes for a substantial amount of time, the sweat glands in your feet start to give out even more sweat. Some materials your shoes and socks have been made from actually increase the amount of sweat you produce. Your shoes absorb this sweat directly or indirectly via your socks and become damp. Furthermore, certain hormonal changes in the body cause an increase in sweating. For instance, pregnant women and teenagers sweat more due to such hormonal changes. Hyperhidrosis, which is a medical condition that makes some people sweat more than usual, could be the reason for sweaty feet. Poor hygiene, where insufficient washing of your feet and changing of your socks, allow bacteria to thrive, is another reason. Bacteria can also be formed when you forget to dry out your shoes after they’ve been wet in the rain or the like. Bacteria and fungi favour such damp and dark conditions. They then begin to thrive on the dead skin cells and sweat in the damp shoe environment. The waste they excrete during their metabolic processes, give off the mal-odorous smell emanating from damp shoes. You can now see that foot care is just as important as facials, make-overs, body massages and hair-grooming. With simple self-help techniques, you can keep on top of the smells coming from your shoes and feet Omoru writes from the UK
Stella Maris School Marks 20th Anniversary One of the popular educational institutions in Nigeria, Stella Maris School, has started a week-long celebration to mark its 20th anniversary. The event, which began on May 23 at the school’s Life Camp and Area One branches in Abuja, will culminate in a thanksgiving service on May 29. High-point of the festival, according to the anniversary committee, is a gala night, which will hold on May 27 at the International Conference Centre. The event is expected to attract top Nigerian celebrities, parents, alumni of the schools, leaders of thoughts, members of the education sector and the media who will be entertained with dances and a medley of songs by an all-student choir. An important aspect of the event is the home-coming of old students who will enjoy an exclusive alumni cocktail
on May 26 and engage the incumbent students in a friendly match on May 28; as well as partaking in the gala night with Nigerian star celebrities. Over the years, the school has won several laurels, as it has been rated the third best in Abuja; emerged one of Nigeria’s top 50 for WASSCE result in 2015; winner best private school in FCT and overall best result. Last year, the school emerged winner in the Junior Engineering Technicians and Scientists (JET) competition organised for private and public schools in the Abuja Municipal Area Council (AMAC). The feat was won by the 2015 overall best graduating student, Master David Ibok-Essien who, after contesting with other winners from the six local councils in the FCT, was also named the best student in the FCT.
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EDUCATION
Nigeria’s Representative to Chinese Bridge Contest Emerges Uchechukwu Nnaike A recent graduate from the Department of Quantity Surveying, University of Lagos (UNILAG), Miss Gbemisola Fadeyi has emerged winner in the college category, of the 2016 Chinese Bridge, Chinese Proficiency Competition in Nigeria, conducted by the Confucius Institute (CI) of the university. By the feat, she will join students from other countries to participate in the semi-final and final of the competition at the headquarters of the Confucius Institute in Beijing, China. The competition, sponsored by Huawei Technologies, was organised at three levels, primary, secondary and college levels. It is aimed at arousing the enthusiasm of students in various countries in learning Chinese and strengthening
the world’s understanding of Chinese language and culture. In the primary and secondary levels, the competition entails quiz and talent show, while the contestants in the college level presented speeches in Chinese language, in addition to the quiz and talent show, where they demonstrate their knowledge of the Chinese culture. Apart from the trip to China to participate in the finals, Fadeyi also received a tablet from the sponsor and would be awarded scholarship; the first runner-up would also travel to China to witness the semi-final and final as a member of the audience, in addition to receiving a tablet; while the second runner-up received the tablet. The other contestants got certificates of participation and consolation prizes. In the primary level, where only two schools were rep-
resented, Ladybird Primary School came first, while AJC Primary School came second. In the secondary level, Ikeja Junior Grammar School came first, while Immaculate Junior School and Grace High School came second and third respectively. The winning schools got trophies and other prizes. Speaking with THISDAY, Fadeyi, who joined the institute last year, said she likes learning languages and that she did her best to emerge the winner. She said she would prepare harder for the finals in China and do her best to make Nigeria proud. She advised those interested in learning Chinese to go for it and do their best, as being able to speak different languages gives one an edge over others. In her remarks, the Director of Confucius Institute, Prof. Yongjing Wang, the competition was organised to select
the best person to go to China to represent Nigeria in the semifinal and the final of the Chinese Bridge. She said since the institute also teaches primary and secondary school students, they were invited to render their performances as practitioners of the Chinese Language. “In one sense we can see how well they have been studying, in the other sense we can see how welcome the competition is among young students.” She expressed satisfaction with the performance of the students, and the ability of Nigerians to learn languages. “I was impressed by their performances, I didn’t expect that they could sing or dance and especially make speeches in Chinese Language.” The Executive Director of the institute, Dr. Tony Okeregbe, said by gaining proficiency
in Chinese Language, “we are better able to relate with others in the world who also have acquired the language; we are also better able to relate with an emerging political actor, which is China, whether you like it or not, China is an emerging political actor, it is an alternative to the present world global order and if you do not have the wherewithal, meaning the language and culture to relate with them, you will lose out.” While congratulating the students for an impressive performance, he commended Ladybird Primary School for being exceptional since the inception of the competition four years ago. On his part, the Public Relations Director of Huawei, Pan Haiyang, expressed delight to contribute towards the competition; he said the company, which entered the Nigerian market in 1999, is
committed to building a digital bridge to connect people around the world with the help of ICT. “Such connection can also be enhanced by language, which is a cultural bridge. People from different cultures can communicate with each other and know each other better with the help of language. “We are now living in a world which sees increasing global economic integration and a fast-growing China. Therefore, knowing each other can’t be more important, which gives rise to Confucius Institute. The institute builds a bridge for cultural communication for China and the world. The Chinese Bridge competition has a slogan ‘Xuehao Zhongguohua, Pengyou Biantianxia’, that means ‘if you learn Chinese well, you can make friends around the world’. If you want to get connected with the world, come learn Chinese.”
Ensign Makes Case for e-Library Daji Sani in Yola The President of the American University of Nigeria (AUN), Prof. Mergee Ensign, has called for the propagation of electronic learning library for easier, improved and qualitative research in all universities in the country. Ensign who made the call during the 99th bi-annual meeting of the Association of University’s Librarian of Nigerian University (AULNU), held recently in Yola, Adamawa state, admonished the association to inculcate the spirit of contributing positively to the developments of the university’s host communities. She said the institution has impacted positively on its host community as it has taken off the streets thousands of children of the Internally Displaced Persons (IDPs), and children and has provided quality education to higher institutions in Yola by providing them with electronic learning materials. “The institution being a developmental university mission is to offer services to members of our greater community, hence the need for the school to involve various institutions and organisa-
tions on how to benefit from electronic resources.” The president said the school also introduced the sharing of e-books with institutions that lacks internet connectivity through library on a Flash (LOAF), noting that over 70 institutions have so far benefited from this programme which content is over 500 e-books on a flash drive. Earlier in her remarks, the AULNU Chairperson, Dr. Blessing Ahiazu, showered encomiums on the management of AUN for the progress it has made since its inception. She described the annual meeting as home coming for the delegates as they have all come to AUN to be exposed to university learning system through e-library. The Executive Secretary, National Universities Commission (NUC), Professor Julius Okojie congratulated AUN for hosting the annual meeting, noting that it is the first time the commission will come in contact with the programme. Represented by Prof. Felicia Etim, he promised that the commission is much on top of the challenges facing Nigerian universities.
UNICAL Inaugurates Board of Media/Community Relations The University of Calabar has appointed Dr. Joseph Ekpang of the Department of Theatre and Communication Arts as the Chairman of the Media/Community Relations Committee of the institution. The Vice-Chancellor, Prof. Zane Akpagu in a release, said the committee would be saddled with the responsibility of drawing up a media/public relations framework for the institution. It will also draw up a road map and interface with host communities geared towards enhanced cordial relationship and co-existence. “It will partner with the public relations unit to ensure actualisation of the university’s
public relations goals. It will also amplify the efforts of the public relations unit and ensure a wide media coverage and publicity of the vice-chancellor and university’s activities. It will act as administrators/editors of the University of Calabar website, as well as perform any other function that may be assigned to you by the vice- chancellor.” Other members of the committee are: Prof. Maurice Asylum, Mr. Gabriel Egbeyemi, Dr. R. C Oporto, Mrs. Amah Ejims, Mr. Ekopimoh Utah and Mr. Eye Efficiently as the Secretary. The board has since been inaugurated.
ACT OF MILK INITIATIVE
L- R: A Nollywood actress, Shola Shobowale; students of Wellspring College ,Omole Phase II, Lagos; and Chef Adeniyi Williams, during the Art of Milk initiative among schools in Lagos by Peak Milk... recently
Design Institute Rewards Winners of Inaugural Competition Peace Obi A three-member team from the Federal University of Technology, Akure, Ondo State has won the inaugural hardware design competition tagged ‘Lagos Labs 2016’, organised by the Design Institute in Lagos, recently. The winning team, comprising Messers Odunlade Emmanuel, Balogun Tobiloba and Eyetemi Egbejule, which presented its project under the aegis of iGas, developed a monitoring system that gauges cooking gas usage and sends the information on the quantity left to the user’s phone. According to a statement signed by Lotte Elsa Goos, the students who were visibly overjoyed when they received the N1 million Access Bank
Innovation Prize for their outstanding performance said the reward would strengthen their commitment and determination to develop more innovative inventions. Participants in the final pitch competition, which attracted students and young professionals from Lagos, Plateau, Osun, and Ondo States, showcased a wide range of new opportunities that the internet can bring to Nigeria, including smart solutions transportation, agriculture, power, safety and health. While the first runner-up team developed a device that sends alarm to one’s family when one is in danger, the second runner-up team built a monitoring system for soil to yield more crops. As part of the organiser’s commitment to impart hardware skills and encourage potential
innovative inventors, the best three teams received mentorship award. The competition was preceded by a three-day workshop where international coaches from Welldone.org, Stanford, MIT, BCG who specialise in building technology and innovative tools along with the team from The Design Institute Lagos, trained participants on hardware skills such as building sensors and using a 3D printer. The statement said the participants’ learning outcome was assessed by their application of the skills to build solutions for infrastructural issues in Nigeria. Commending the participants’ enthusiasm, commitment, brilliance and willingness to learn, one of the coaches, Sean Jeffries, said “these are some
of the fastest learners we have ever taught hardware.” In her remarks, Goos hinted that what started as a small idea grew into something bigger just in a few months. “We are excited to work towards the continued success and growth of the Lagos Labs. It is a fantastic way to catalyze innovation in Nigeria.” She also thanked the individuals and corporate organisations who partnered the institute to make the competition a success. The Lagos Design Institute is a product, experience and innovation design firm that teaches people how to establish and nurture creativity and innovation in their lives and organisations. It was co-founded by Toks Fagbamigbe and Lotte Elsa Goos.
Surefoot School Honored for Enhancing Grassroots Education Surefoot International School, Calabar recently received an award of excellence for its contributions to grassroots education in Cross River State. The award, which was bestowed by Grassroots Newspaper Publishers Network, was in recognition of the school’s impact on Calabar
and Cross River State as a whole. It recognised Surefoot as the best school in Cross River State in the areas of students’ performance, staff competency, facilities and provision of a safe and secure environment. The Principal, Joseph David, who was one of the representa-
tives at the award ceremony, said “it is a matter of immense pride for Surefoot to be the recipient of this excellence award. It is also reason enough to set higher benchmarks and draw closer to our vision of becoming the centre of excellence in education.” Surefoot is a private, co-
educational, inclusive day and boarding international school founded on solid Christian values. The school, which offers both international and national curricula, ensures that its students are imbued with lifelong skills that will transform them into global leaders.
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CITYSTRINGS
Acting Features Editor: Charles Ajunwa Email charles.ajunwa@thisdaylive.com
Trading on Rail Tracks
Peter Uzoho writes on a common feature of rail tracks in Nigeria, particularly in Lagos, with its attendant disruption of train movement
O
ne common feature of rail tracks in Nigeria, particularly in Lagos, is the convergence of people at designated points and terminals for the purposes of buying and selling, with its attendant disruption of train movements. For instance, in Lagos, the major rail tracks, namely, Ikeja along, Oshodi and Mushin, are on daily basis occupied by traders and their customers, turning them to commercial centres. Early in the morning, traders converge with their wares to do the morning session and would retreat at sun rise. In the evening also, being the prime time, they would resurface and would stay till night fall. Although, they are conscious of the time of the arrival and departure of trains on the routes, they would display their wares on the rail tracks, carry on with their businesses,but on sighting an upcoming train, would start struggling to clear them off the tracks. Among these traders are young men and women, married women and even teenagers, who are into the risky business as their only source of survival. At these railway-turned markets, the common articles sold are fairly-used clothes and shoes, popularly known as ‘okrika’, belts and bags. There are also those who sell books and educational materials. Hawkers of sachet water, canned drinks, fruits and all paraphernalia of articles are equally on ground to display what they have with all manner of aggression. On many occasions, these traders would go to the length of blocking ways with their goods, making it difficult for passers-by to move. Some, when a passer-by unknowingly steps on their wares, would resort to fighting the innocent fellow. Furthermore, a train that is scheduled to reach a destination at a particular time will have to wait longer than necessary since it has to wait for these traders to clear their wares from the track before it would continue its journey. With their mind centred on the income they generate from the business, they have no time to consider the dangers inherent in the business. However, many argue that there is no justifiable reason for a rational being to indulge in a venture that is as dangerous as trading along rail tracks. They also see such act as constituting nuisance to the society and call for its abolition. “I don’t know why people in their right senses should risk their lives for the sake of making money”, Mr Jonathan Kayode, a regular passer-by at Ikeja along, Lagos, tells THISDAY in an interview that "In the past no one dared stay on the rail track for any reason, but this time, people would just be doing whatever they like on it, forgetting that train is not as controllable as a car. Every time people gather here buying and selling, some don’t even have anything to sell or buy, but because they have seen crowd they would come and join,” he said. “I think when the former Governor of Lagos State, Babatunde Fashola was in charge, there was a ban on trading along rail tracks in Lagos. It’s just of recent that trading activities returned in those rail tracks. I don’t know why this present Governor allowed that to be happening”, Mr.
Early in the morning, traders converge with their wares to do the morning session and would retreat at sun rise. In the evening also, being the prime time, they would resurface and would stay till night fall
Trading on rail tracks
Godwin Echefu, a resident at Ikeja along area, noted.
According to him, “There should be total ban on trading along rail tracks. Rail track is
not a commercial shop; if people want to do business, let them go and look for shops and
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CITYSTRINGS
Traders on rail tracks in Lagos
Aerial view of people trading on rail tracks
not to turn rail ways to their shops. If they don’t value their lives I think government can do that for them. Even the crowd constitutes nuisance to the public; the area boys have taken the place as their home and they keep molesting unsuspecting public passing across the rail tracks”, Echefu added. Ironically, why people show concern to the lives of these traders and their customers, they have vowed not to leave the business as they argue that they have no money to rent shops for their business. According to them, they pay some fees to be allowed to trade there. “I don’t have money to rent shop and I can’t afford to stop coming here to sell my goods. Ms Bolanle Ogunlana, who sells ladies clothes at the Ikeja along rail track, tells THISDAY. According to her, selling at the rail track makes her sell faster, increases her turn-over and profit. “When I do my business here, I sell my goods faster and even make more profit than those who sell in shops; our customers know that this is where they can buy good quality clothes and shoes at a cheaper price”, Bolanle says. When asked if she is aware of the dangers in doing such business, she said, “Everybody here knows that when train is coming, he or
she has to pack for it to pass and then comes back later; so train will not kill anybody here.” “It’s like a jungle; we are all here to hustle, so everyone has to be smart”, Mr. Chima Ezenwa, a shoe seller says. “The business is a morning and evening thing; it last for just few hours, so we have a very short time to trade. Some trade in the morning while others trade in the evening. It’s the crowd that come around this area that makes us come here to sell. So going to another place will not really help us. People always say we should stop trading along rail way tracks because of the danger of rail accident. But we tell them that there is no place you are that is 100 per cent free of danger. Even those in shops witness some form of danger,” Ezenwa explained. According to him, he and his family depend on the business for sustenance. “It’s from this business my family survives; If I don’t come here to sell, I won’t be able to make enough sale as to take care of the responsibities before me”, he says. “We’re not staying here illegally because we pay for space before we are allowed to stay and sell”,Mr. Obinna Pius, one of the traders told THISDAY.There is a task force that comes here every month to collect money from us;
There should be total ban on trading along rail tracks. Rail track is not a commercial shop; if people want to do business, let them go and look for shops and not to turn rail ways to their shops. If they don’t value their lives I think government can do that for them. Even the crowd constitutes nuisance to the public; the area boys have taken the place as their home and they keep molesting unsuspecting public passing across the rail tracks
so if you don’t pay ,you will not be allowed to do business here”, he said. Meanwhile, as it takes both the seller and the buyer for business to thrive, THISDAY interviewed some customers who vehemently threw their weight behind trading along rail tracks. To them, it makes them spend less to get what they want to buy, saving them the difficulty and embarrassment of going to buy clothes and shoes at boutique. “This is where I normally buy most of my clothes and shoes; here you get cheap and quality materials, even if they are fairly used, but they will last longer. So I don’t see any reason why they should be banned from selling here”, Edith Abiola says. “It’s from them that most ordinary people buy from; it’s not everybody that can afford to buy clothes at the boutique. Besides, they are not stopping train from passing. What will happen to them if they are chased out? How will they manage to feed themselves? Since government cannot provide free shops for them, I think they should be allowed to be where they are, till they are able to raise money to rent their own shops. After all, some of those traders that are in shops now, started like them”, Abiola noted.
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WEDNESDAY MAY 25, 2016 • T H I S D AY
INTERNATIONAL
email:foreigndesk@thisdaylive.com
UN Expresses Concern as Iraqi Forces Keep up Shelling Falluja
Iraqi forces yesterday continued to shell the Islamic State targets in Falluja, the second day of an assault to retake the militant stronghold just west of Baghdad, as international concern mounted for the security of civilians. Residents in the city, 50 km (30 miles) from the capital, reported sporadic shelling around the city centre, but said it was less intense than on Monday. “No one can leave. It’s dangerous. There are snipers everywhere along the exit routes,” one resident told Reuters by internet. About 100,000 civilians are estimated to be in Falluja which, in January 2014, became the first Iraqi city to be captured by Islamic State, six months before the group declared its caliphate. The population was three times bigger before the war. The Iraqi military said it had dislodged the militants from Garma, a village to the east, overnight. No casualties were reported by the army or the city’s main hospital. On Monday, eight civilians and three militants were killed, and 25 people wounded, 20 of them civilians, according to the hospital.
The US-led coalition “is providing air power to support the Iraqi government forces in Falluja,” its spokesman, U.S. Army Col. Steve Warren, told Reuters by phone. The United Nations and the International Committee of the Red Cross issued statements on Monday evening appealing for the warring parties to protect civilians, who have limited access to food, water and healthcare and who now risk being used as human shields. Resourceful residents have begun appropriating solar panels affixed to street lights to generate power in their homes. Even the militants have had to scrounge and conserve supplies, collecting plastic objects to turn into makeshift fuel and conducting patrols on bicycle, residents told Reuters. Prime Minister Haider alAbadi said the armed forces had been“instructed to preserve the lives of citizens in Falluja and protect public and private property.” “Those who cannot take the exit routes, they can stay at home and not move,” he added in comments aired by state Iraqi TV while on visit to the field command center near Falluja. The Association of Muslim
Scholars of Iraq, a hardline political organisation formed in 2003 to represent minority Sunnis, on Monday condemned the campaign as “an unjust aggression, a reflection of the vengeful spirit
that the forces of evil harbour against this city”. It said in a statement nearly 10,000 residents had been killed or wounded by government shelling over the past two years, which Reuters
could not verify, and warned any victory would be“illusory”. The military campaign could take “many weeks, if not longer”, predicted Ranj Alaaldin, an Iraq expert at the London School of Economics,
due to lingering support for Islamic State among many residents who may still prefer the militants to a Baghdad government long perceived as sectarian and repressive.
NRA WELCOMES TRUMP
Donald Trump addresses members of the National Rifle Association’s during their NRA-ILA Leadership Forum in Louisville, Kentucky…recently
Belarus Pledges Support Chinese Embassy Embarks on CSR, Partners for Nigeria’s Agriculture Ogun Community Alex Enumah in Abuja
The Embassy of the Republic of Belarus has pledged support for Nigeria’s agriculture sector. Belarus Ambassador to Nigeria, Mr. Vyacheslav Vasilievich Beskosty, made this disclosure in Abuja yesterday during a courtesy visit by members of the Board of Trustees and Executive Committee of Belarusniki. Belarusniki is a non-political, non-religious and non-ethnic association of graduates from Institutions of Higher Learning in the Republic of Belarus. The ambassador disclosed that several companies in the agriculture sector in Belarus like MTZ which produces tractors, had opened their offices in Abuja and Lagos to facilitate export of their products in Nigeria, adding that MTZ signed an agreement with Nigeria in 2014 to export 3,000 tractors to the country. Beskosty, while promising that the embassy would facilitate the export of technology to boost agriculture in Nigeria, reiterated the benefits of mechanized agriculture in promoting food security in Nigeria, adding that the embassy would also facilitate the export of electrical goods like transformers to boost electricity supply. He explained further that the Embassy is in contact with some Nigerian companies to organise visit of Nigerian businessmen to Belarus to explore business opportunities in the country. He disclosed that about 600 Nigerian students were currently studying in various institutions of
higher learning in Belarus, adding that Nigeria has the 4th largest population of foreign students studying there. He commended the initiators of Belarusniki, saying, ``it is a good thing that graduates from Institutions of Higher Learning in Belarus have decided to come together to establish the association.’’ The ambassador also expressed delight that members’ promise to promote economic and cultural ties between the two countries. Beskosty also promised that the embassy would heed the call of the President of the association to find solutions to the strict entry visa requirements for genuine Nigerian businessmen wishing to seek opportunities to visit Belarus. Earlier, the President of Belarusniki, Engr. Muktar Usman, said that members of the association were willing to use their wealth of experience and connections in government and in the private sector to promote economic, cultural and business ties between Nigeria and Belarus. He appealed to the government of Belarus to seize the opportunity offered by the establishment of the association to exploit the huge investment potentials that abound in various sectors of Nigeria’s economy, especially in the Public Private Partnership sector. Usman said that members of the association were ready to collaborate with the embassy in the establishment of strong networks of business relationships between the two nations.
Chiemelie Ezeobi As part of its Corporate Social Responsibility (CSR), the Chinese Embassy in collaboration with SEPCOIII Electric Power Construction Corporation, a Chinese company, has partnered the Ogun State Government. In fulfillment of their CSR, they recently renovated the Olorunsogo Community Primary School in Ifo, Ogun State. Prior to the renovation, about 250 pupils of the school were usually beaten by the elements as there were no roofs, neither where there chairs nor tables. Aside renovating the block of five classrooms for the community, the company also donated school bags, chairs, tables
and other learning materials to the children. Handing over the refurbished school to the community, Chinese Consul-General Liu Kan said the total input cost $31,000USD, adding that a total of 255 bags provided to the children were sponsored by the consulate. He said the initiative was conceived under the framework of the China-Africa-People-to-People -Friendship-Action, adding that the framework was yearly and will be replicated across other communities in the country, adding that Lagos has benefitted from same initiative in the past three years. Kan said the programme was aimed at encouraging and supporting exchanges and corporation between
organisations, women and young people of both countries. He added that it encourages joint undertaking of small, micro programmes as well as promote mutual visits between the people of both countries. He said, “The rehabilitation project for Olorunsogo Community Primary School was coordinated by the Consulate and carried out by SEPCOIII under the framework of the programme. The construction work was completed before May 2, the beginning of the new term. “The total input of the project amounts to $31,000. The project is one more testimony of amity of Chinese people to Nigerian people. This year, the Consulate
will conduct two more projects under this framework.” Commending the Ambassador and the firm for their kind gesture, Ogun State Commissioner for Education, Mrs. Modupe Mujota, urged other private concerns on the state to follow suit and assist the government in its drive towards improving quality of life of the people. She said, “The adoption of Community Primary School, Olorunsogo, Ifo and donation of a rehabilitated block of five classrooms; 102 pairs of pupils chairs and boards, among others, will no doubt take teaching and learning to greater heights with far reaching impact.”
Commonwealth Deputy Scribe Cautions African Leaders on Post-election Violence Hammed Shittu in Ilorin Deputy Secretary-General, (Political), Commonwealth Secretariat, Dr. Josephine Ojiambo on Monday cautioned African leaders to desist from any form of post- election violence and learn how to deploy internal mechanism to resolve their internal conflicts. She however said managing post- election violence could be very difficult especially where external influences were allowed to meddle in the political affairs and process of managing consequences of local crisis. Ojiambo a former Ambassador and Deputy Permanent Representative of Kenya to the United Nations, spoke at the
7th International Students’ Day organised by the University of Ilorin centre for International Studies. According to her,‘‘I want to call on all of us to avoid post-election violence, conflict is very difficult to manage particularly if you allow external influence’’, she said. She praised Nigeria’s former President Dr. Goodluck Jonathan for conceding defeat during the 2015 general elections which ushered in President Muhmmadu Buhari as the incumbent president of Nigeria. The deputy Secretary- General acknowledge that though‘Professor Attahiru Jega’s led Independent Electoral Commission (INEC) conducted a free fair and credible election, Jonathan’s concession’’ of
defeat saved Nigeria from the kind of post election that would have engulfed the country like it was experienced in her country, Kenya in 2011. She said the commonwealth which comprises 53 members nation was working on its new mandate of ‘‘preventing violent extremism’’ even as she said that the commonwealth secretariat was also working on how to come up with a ‘‘legal framework that will regulate cyber space’’. The diplomat said though cyber network could be useful in achieving positive ideals,‘‘it can be easily used to lead young ones astray’’. While presenting her lecture titled ‘‘Internalisation of Higher Education : Opportunities a For
African Students’’, Ojiambo advised international students to always explore the opportunities of diaspora and bring home only positive values that could bring about the development of their various countries . In his address titled ‘’Future Interest’’, Vice Chancellor of the University of Ilorin, Professor Abdulganiyu Ambali said ‘‘the future of survival of the human race’’ depends on the choices international education made by people from the African continent. Director of the Centre for International Education, Professor Mohammed Ibrahim said the institution has 272 international students from 18 countries with 21 international staff.
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BUSINESS/MONEYGUIDE
Power Output Seen at 20% of 2016 Peak After Attacks Obinna Chima Power output in Nigeria plunged to a fifth of this year’s peak after attacks on natural gas pipelines cut supplies of the fuel to electricity producers, according to Egbin Power Plc, the country’s largest generator. Total generation fell to 1,000 megawatts on Monday from almost 2,000 MW at the end of last week and is expected to decline further, Egbin’s Chief Executive Officer Dallas Peavey Jr told Bloomberg. Egbin is generating less than 10 per cent of its 1,320 megawatt capacity due to ruptured supply lines, Peavey said. “For all the plants, there’s no gas,” Peavey said. “We’re sitting idle here.”
The Nigerian Electricity Regulatory Commission didn’t immediately respond to calls and messages seeking confirmation of power generation figures. Power generation in Nigeria; sub-Saharan Africa’s biggest economy, is now about a 30th of that of South Africa, the second biggest. After peaking at 5,074 megawatts in February, power generation in Nigeria is being crippled by a resurgence of attacks on oil and gas pipelines in the hydrocarbon-rich Niger River delta, the source of fuel for about 80 percent of the country’s power plants. Oil production has fallen to a 27-year low of 1.4 million barrels a day after a wave of attacks this month.
Plans to boost Egbin’s capacity by between 1,575 megawatts and 1,900 megawatts are now on hold, Peavey said. Instead, the company will build a liquefied natural gas terminal as it seeks to solve its supply woes, Peavey said. The gas outages have “brought to a halt, at least temporarily, our plans to double the capacity of the plant,” he said. “We can’t double the capacity if we can’t find the fuel.” Nigerian National Bureau of Statistics data published May 20 showed that the economy, the largest in Africa, contracted in the first quarter for the first time since 2004, as oil production slumped and the manufacturing, financial and real-estate industries declined.
Banks Urged to Empower Young People with Financial Skills Ugo Aliogo The Deputy Governor of Lagos State, Dr. Idiat Oluranti Adebule, has called on banks to play a major role in equipping young people with requisite financial skills, and knowledge needed to manage their finances. Adebule made the remark at the launch of Heritage Bank Financial Literacy Comic Book entitled: “The ProtectorsKeepers of the Heritage,” for young persons, in Lagos yesterday, lauded the initiative. She said it will further help to recognise the values of children as the building blocks of a
strong and united nation. Adebule who was represented at the event by the Permanent Secretary, Ministry of Public Service Office, Mr. Adesina Odeyemi, stated that the Lagos state government would continue to encourage initiatives meant for the proper upbringing of children in order to prepare them for the future. She stressed that the resolve of the administration to curb all forms abuses such as domestic violence and all negative tendencies that may impede their fundamental human rights. Furthermore, she stated that the state is committed to providing not only free educa-
tion, but quality, and effective education, “we believe that no investment is too much to spend on the mental, physical, social, emotional as well as the psychological development of our children.” The Divisional Head, Customer Experience and Analytics, Rabi Momoh, said the book would help develop the mindset of the children especially in the area of taking good financial decisions, adding that the bank is highly committed to addressing literacy in the society, while also aligning itself with the Central Bank of Nigeria (CBN) financial inclusion strategy.
Access Bank Gives out Cars in Promo Peter Uzoho Access Bank Plc has rewarded two of its customers that participated in its on-going “Smart Savers” promo of the bank with a brand new Hyundai i10 car each. In a joint draw held for the months of March and April, held in Lagos, Mr. Ali Ahummed and Mr. Abdulrasaq Ayinde were rewarded with a brand new Hyundai i10 car each, having emerged winners for the two respective months. Speaking at the event, the Group Head, Channel Services,
Access Bank, Mr. Segun Ogbonnewo, said the essence of the smart savers was to give financial access to people who were not using banking services and also to support the financial inclusion policy of the federal government. “Today is the first draw of the promo that we as Access Bank have embarked upon and it’s about what we call “smart savers product in Access Bank. The ‘smart savers’ is a product that is designed to give financial access to people who are usually, not users of bank product. The Federal
Government embarked on what is called ‘financial inclusion’ and the Central Bank as well as other commercial banks is leading this initiative,” Ogbonnewo said. “And the purpose for that is to be able to get many more Nigerians who ordinarily, do not use banking services, to get involved in banking services, that is, to participate and benefit from the advantages of using banks. And so, we have different kinds of saving. So this is just one of the savings products that can get benefits to them,” he added.
Power
MARKET INDICATORS MONEY AND CREDIT STATISTICS
(MILLION NAIRA)
FEBRUARY 2016 Broad Money (M2)
20,489,166.72
-- Narrow Money (M1)
9,095,578.34
---- Currency Outside Banks
1,377,483.11
---- Demand Deposits
7,682,095.23
-- Quasi Money
11,429,588.38
Net Foreign Assets (NFA)
5,471,351.78
Net Domestic Assets(NDA)
15,017,814.94
-- Net Domestic Credit (NDC)
22,414,322.75
---- Credit to Government (Net)
3,424,029.62
---- Memo: Credit to Govt. (Net) less FMA
4,807,604.55
---- Memo: Fed. and Mirror Accounts (FMA)
-1,383,574.93
---- Credit to Private Sector (CPS)
18,990,293.13
--Other Assets Net
-7,396,507.81
Reserve Money (Base Money)
5,095,380.23
--Currency in Circulation
1,711,623.51
--Banks Reserves
3,383,756.72 • Source - CBN
MANAGED FUNDS Initial Price (N) Stanbic Balanced Fund
Buying Price(N)
Selling Price
1,660.29
1,685.29
Stanbic IBTC NEF
1,000.00
11,002.32
11,326.67.11
Stanbic SIBond
20
120.47
120.47
Stanbic IBTC Ethical
1
1.10
1.13
Wi-Pay to Showcase Product at Card Expo
Stanbic IBTC GIF
142.90
143.38
UBA Balanced Fund
1.2563
1.2493
Obinna Chima
UBA Bond Fund
1.3443
1.3443
UBA Equity Fund
0.8205
0.8074
UBA Money Market Fund
1.1510
1.1510
ARM Aggressive Growth Fund
N13.0544
N13.4480
ARM Discovery Fund
N288.2515
N296.9425
ARM Ethical Fund
N22.5268
N23.2060
Wi-PAY Technologies has announced it will be participating in the forthcoming Digital Africa conference and exhibition holding in Abuja from June 1st to 3rd 2016. The three day event is expected to connect manufacturers with buyers and consumers by introducing new innovations into the consumer technology market. It will also provide media support to ensure global visibility for displayed products and services. The company will also be participating in the CardExpo Africa exhibition organised by Intermarc Consulting Limited in conjunction with the Central Bank of Nigeria (CBN) from June14th to 16th 2016 in Lagos.
According to a statement, the exhibition will focus on the future of retail payment and ecommerce and how innovation will drive the process as well as service delivery strategy that will define the future of retail payments and e-commerce in the country. The company is also being nominated for an award in the Payment Innovation of the Year category, taking place during the event. “These platforms will serve as unique opportunities to establish a strong presence of our business and meet new customers,” according to the Head of Corporate Services of the company, Mrs. Helen Okocha. In a related development, the company announced the commencement of the
second phase of advertisement campaign beginning this month. This will include outdoor advert, radio jingle and TV commercials in select stations within Nigeria and African region. The first phase included advert on various social media platforms. ‘’It offers an avenue to promote our products to a larger group of people who have little information of our services, as well as reaching out to existing clientele’’- according to the Head of Operations/IT of the company, Mr. Charles Ighedo. The broad range of products and services targeted to the Business-to-Consumer (B2C) market includes the Wi-Pay Mobile App (Wi-App) and online payment portal.
ARM Money Market Fund
13.1030 (Yield % ) • Monetary Policy Rate - 13%
OPEC DAILY BASKET PRICE AS AT MONDAY 23, MAY 2016 The price of OPEC basket of thirteen crudes stood at $44.07 a barrel on Monday, compared with $44.77 the previous Friday, according to OPEC Secretariat calculations. The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Minas (Indonesia), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela). SOURCE: OPEC headquarters, Vienna
51
T H I S D AY • WEDNESDAY MAY 25, 2016
Nigeria’s top 50 stocks based on market fundamentals
24-May-16
23-May-16
% Change
Capitalisation
EPS
P/E
P/S
Div. Yld
Price/ Book Value
01 Dangote Cement Plc
170.01
167.09
1.75%
2,897,056,663,924.05
10.64
15.70
5.79
4.79%
4.42
02 Nigerian Brew. Plc.
127.61
125.30
1.84%
1,011,832,564,317.68
5.37
23.34
3.60
2.87%
5.83
20.20
20.02
0.90%
594,509,820,324.80
3.38
5.93
2.57
8.84%
1.42
730.00
730.00
0.00%
578,639,063,960.00
29.95
24.38
3.83
3.97%
15.22
05 Zenith Bank Plc
15.00
15.17
-1.12%
470,947,406,790.00
3.37
4.51
1.10
11.87%
0.80
06 Lafarge Africa Plc.
77.00
77.40
-0.52%
350,727,439,370.00
5.93
13.06
1.32
3.88%
2.00
07 Ecobank Transnational Incorporated
15.60
15.12
3.17%
286,252,998,954.00
1.39
10.86
0.54
4.10%
0.74
08 Forte Oil Plc.
212.47
212.47
0.00%
276,738,159,954.41
4.45
47.76
2.22
1.62%
5.98
09 Seplat Petroleum Dev. Co. Ltd.
355.00
355.00
0.00%
196,425,161,115.00
23.48
15.12
1.74
4.48%
0.70
10 Stanbic IBTC Holdings Plc
16.12
16.54
-2.54%
161,200,000,000.00
2.04
8.12
1.40
0.60%
1.47
11 United Bank for Africa Plc
4.42
4.40
0.45%
160,355,506,343.24
1.64
2.68
0.51
13.64%
0.48
12 Access Bank Plc.
5.20
5.10
1.96%
150,425,452,481.20
2.28
2.24
0.44
10.78%
0.40
13 Guinness Nig Plc
95.10
95.10
0.00%
143,209,966,678.80
0.78
122.19
2.87
0.00%
3.20
14 FBN Holdings Plc
3.79
3.80
-0.26%
136,043,159,681.68
0.42
9.00
0.27
3.95%
0.24
31.00
31.00
0.00%
117,282,183,750.00
0.32
98.36
1.98
0.16%
14.65
16 7-Up Bottling Comp. Plc.
141.00
141.00
0.00%
90,323,241,183.00
11.12
12.68
1.16
1.56%
3.76
17 P Z Cussons Nigeria Plc.
21.81
21.81
0.00%
86,596,104,351.45
1.10
19.88
1.20
5.96%
2.06
18 Dangote Sugar Refinery Plc
6.77
6.60
2.58%
81,240,000,000.00
0.96
6.87
0.78
7.58%
1.36
19 Oando Plc
6.02
6.00
0.33%
72,448,405,741.88
0.50
12.00
0.13
12.50%
0.46
19.98
19.98
0.00%
65,819,100,614.40
0.64
31.26
3.56
1.25%
5.46
175.00
175.00
0.00%
63,104,170,850.00
13.51
12.95
0.98
4.11%
4.11
22 Flour Mills Nig. Plc.
22.83
22.83
0.00%
59,911,334,979.21
1.84
12.40
0.18
8.76%
0.58
23 Julius Berger Nig. Plc.
45.00
45.00
0.00%
59,400,000,000.00
1.85
24.34
0.44
3.33%
2.45
169.00
169.00
0.00%
57,379,190,453.00
11.92
14.18
0.28
8.28%
3.53
25 Transnational Corporation Of Nigeria Plc
1.22
1.19
2.52%
47,239,616,858.50
0.05
22.68
1.13
0.00%
0.53
26 Sterling Bank Plc.
1.60
1.60
0.00%
46,064,669,001.60
0.36
4.48
0.42
5.63%
0.48
27 Diamond Bank Plc
1.92
1.91
0.52%
44,467,946,818.56
0.24
7.82
0.20
0.00%
0.21
19.50
19.50
0.00%
37,456,855,546.50
2.70
7.22
0.51
5.13%
0.51
1.27
1.24
2.42%
36,782,483,828.84
0.48
2.58
0.24
12.90%
0.20
30 Presco Plc
35.71
35.71
0.00%
35,710,000,000.00
3.28
10.89
3.14
0.28%
1.59
31 Cadbury Nigeria Plc.
16.38
17.24
-4.99%
30,764,949,415.20
3.21
5.38
0.96
7.54%
3.13
32 Wema Bank Plc.
0.75
0.74
1.35%
28,930,849,560.75
0.06
12.27
0.62
0.00%
0.62
33 FCMB Group Plc.
1.42
1.44
-1.39%
28,119,849,309.02
0.24
5.99
0.19
6.94%
0.18
34 Cap Plc
40.00
40.00
0.00%
28,000,000,000.00
2.49
16.10
3.97
2.88%
18.42
35 Okomu Oil Palm Plc.
29.00
29.00
0.00%
27,663,390,000.00
2.76
10.51
2.84
0.34%
2.29
36 Glaxo Smithkline Consumer Nig. Plc.
21.54
22.42
-3.93%
25,759,179,551.52
0.81
27.78
0.88
1.34%
2.03
37 National Salt Co. Nig. Plc
8.23
8.15
0.98%
21,804,877,850.94
0.79
10.25
1.33
6.75%
3.05
38 Custodian And Allied Insurance Plc
3.61
3.61
0.00%
21,233,529,743.95
0.71
5.06
0.71
3.88%
0.81
39 Mansard Insurance Plc
2.01
2.01
0.00%
21,105,000,000.00
0.16
12.70
1.27
2.49%
1.21
40 Skye Bank Plc
1.14
1.13
0.88%
15,823,543,607.40
0.85
1.32
0.11
26.55%
0.11
41 Honeywell Flour Mill Plc
1.64
1.70
-3.53%
13,005,524,159.12
0.14
12.03
0.27
9.41%
0.63
42 Continental Reinsurance Plc
1.04
1.08
-3.70%
10,787,654,084.48
0.21
5.23
0.57
11.11%
0.72
43 Cement Co. Of North.Nig. Plc
7.86
7.86
0.00%
9,877,487,240.76
0.96
8.22
0.76
1.27%
0.97
44 Unity Bank Plc
0.79
0.77
2.60%
9,234,576,974.18
0.54
1.42
0.14
0.00%
0.10
45 Nigerian Aviation Handling Company Plc
4.78
4.56
4.82%
7,763,765,625.00
0.33
13.77
0.87
4.39%
1.21
46 UACN Property Development Co. Limited
4.27
4.12
3.64%
7,339,062,478.65
1.81
2.28
0.63
16.99%
0.21
47 Wapic Insurance Plc
0.50
0.50
0.00%
6,691,369,126.00
0.10
5.16
0.94
6.00%
0.45
48 Resort Savings & Loans Plc
0.50
0.50
0.00%
5,664,866,202.00
4.68
0.11
0.02
0.00%
1.89
49 AIICO Insurance Plc.
0.75
0.75
0.00%
5,197,653,360.00
0.28
2.71
0.16
6.67%
0.54
50 Fidson Healthcare Plc
2.20
2.10
4.76%
3,300,000,000.00
0.50
4.23
0.38
2.38%
0.50
03 Guaranty Trust Bank Plc. 04 Nestle Nigeria Plc.
15 Unilever Nigeria Plc.
20 International Breweries Plc. 21 Mobil Oil Nig Plc.
24 Total Nigeria Plc.
28 U A C N Plc. 29 Fidelity Bank Plc
TOTAL
8,743,655,796,160.77
TOTAL MARKET CAP
9,352,642,584,827.94
% OF MARKET CAP Annotation - MA* = Simple Moving Average
93.49%
Table 1 Market Statistics Mkt Indicators NSE All Share Index NSE Market Cap (N'Trillion)
Open Close Change % 23-May-16 24-May-16 27,015.97 9.28
27,231.50 9.35
0.80 0.80
111.32 8.67
112.30 8.74
0.88 0.88
Thisday BGL 50 Index Thisday BGL 50 Market Cap (N'Trillion)
Table 3 Top 5 Gainers Stock
Open Close Change 23-May-16 24-May-16 %
Nigerian Aviation Handling Company Plc Fidson Healthcare Plc UACN Property Development Co. Limited Ecobank Transnational Incorporated Unity Bank Plc
4.56
4.78
4.82
2.10 4.12
2.20 4.27
4.76 3.64
15.12
15.60
3.17
0.77
0.79
2.60
Table 4 Top 5 Losers Stock
Open Close Change 23-May-16 24-May-16 %
Cadbury Nigeria Plc. Glaxo Smithkline Consumer Nig. Plc. Continental Reinsurance Plc Honeywell Flour Mill Plc Stanbic IBTC Holdings Plc
17.24 22.42
16.38 21.54
-4.99 -3.93
1.08 1.70 16.54
1.04 1.64 16.12
-3.70 -3.53 -2.54
Market reverses one day loss as ASI gains 0.80% Market pulse on the Nigerian Stock Exchange (NSE) today – Tuesday, May 24, 2016 ended on a bullish note as the market closed green due to renewed optimism. This was further highlighted by positive performances from the NSE Sub sectors; Banking, Consumer Goods and Oil & Gas (Save Insurance). Trading activities decreased in volume as 274.22 million shares worth N1.53 billion in 4,160 deals exchanged hands today. This is a decrease from the 316.74 million shares worth N1.91 billion in 3,924 deals carried out on Monday. Topping in volume terms was FBNH Plc, United Capital Plc and Access Bank Plc, while FBNH Plc and Zenith Bank Plc ended trading as the most active stocks in value terms. The All Share Index (NSEASI) closed positive with a 0.80% (+215.53) increase to 27,231.50 from 27,015.97 the previous trading day. Market Capitalization appreciated in tandem to N9.35 trillion from N9.28 trillion of prior trading day. Similarly, the Thisday BGL 50 Index followed suit with an increase of 0.88% to close at 112.30 from 111.32 recorded the previous trading day, while its market capitalization stood at N8.74 trillion from N8.67 trillion of the previous trading day. A total number of 25 stocks gained on the bourse today while 18 stocks declined, leaving 55 stocks unchanged. NAHCO Plc emerged the toast of investors as it topped the Thisday BGL 50 Index gainers’ list with a gain of 4.82% to close at N4.78 per share. It was followed by Fidson Healthcare Plc with a gain of 4.76% to close at N2.20 per share. Others on the gainers list include; UPDC Plc, ETI Plc and Unity Bank Plc, while on the decliners’ list Cadbury Nigeria Plc led with a loss of 4.99% to close at N21.81 per share. It was followed by GSK Plc with a loss of 3.93% to close at N21.54 per share. Others on the losers list include; Continental Reinsurance Plc, Honeywell Flour Mill Plc and Stanbic IBTC Holdings Plc. REQUIRED DISCLOSURE This report has been prepared by BGL Plc. BGL Plc does and seeks to do business with companies covered in its research reports. As a result, the firm may have a conflict of interest that could affect the objectivity of this report. Investors should use this report as one of many other factors in making their investment decisions.
For more details go to www.thisdaylive.com
52
T H I S D AY • WEDNESDAY, MAY 25 , 2016
MARKET NEWS
Stock Market Rebounds on MPC’s Decision to Tackle Exchange Rate Issue Goddy Egene and Eromosele Abiodun The stock market rebounded yesterday rising by 0.80 per cent in reaction to the decision of the Central Bank of Nigeria (CBN)’s Monetary Policy Committee (MPC) to address the lingering concern around the exchange rate among others issues. The market had declined
the previous day as some investors took profits while others awaited the decisions of the MPC. However, stocks rebounded with the Nigerian Stock Exchange (NSE) All-Share Index rising 0.80 per cent to close at 27,231.50, while market capitalisation added N74.02 billion to close at N9.35 trillion. The gains increased the NSE ASI’s month-to-date appreciation to 7.7 per cent, while the
T H E MAIN BOARD
DEALS
MARKET PRICE
year-to-date loss reduced to 5.68 per cent. The positive performance was driven by gains recorded by Guaranty Trust Bank Plc, Dangote Cement Plc and Nigerian Breweries Plc. In all, 29 stocks appreciated , compared with 19 stocks that depreciated. Investors traded N276.2 million valued at N1.53 billion in 4,160 deals. Some analysts said they expect investors to react posi-
N I G E R I A N QUANTITY TRADED
STO C K
VALUE TRADED ( N )
Daily Summary as of 22/02/2016 Printed 22/02/2016 14:36:10.010
Daily Summary (Bonds) No Debt Trading Activity Daily Summary (Equities) Activity Summary on Board EQTY AGRICULTURE Crop Production OKOMU OIL PALM PLC. PRESCO PLC Crop Production Totals Livestock/Animal Specialties LIVESTOCK FEEDS PLC. Livestock/Animal Specialties Totals AGRICULTURE Totals CONGLOMERATES Diversified Industries A.G. LEVENTIS NIGERIA PLC. TRANSNATIONAL CORPORATION OF NIGERIA PLC U A C N PLC. Diversified Industries Totals CONGLOMERATES Totals CONSTRUCTION/REAL ESTATE Infrastructure/Heavy Construction JULIUS BERGER NIG. PLC. Infrastructure/Heavy Construction Totals Real Estate Development UACN PROPERTY DEVELOPMENT CO. LIMITED Real Estate Development Totals CONSTRUCTION/REAL ESTATE Totals CONSUMER GOODS Beverages--Brewers/Distillers CHAMPION BREW. PLC. GUINNESS NIG PLC INTERNATIONAL BREWERIES PLC. NIGERIAN BREW. PLC. Beverages--Brewers/Distillers Totals Beverages--Non-Alcoholic 7-UP BOTTLING COMP. PLC. Beverages--Non-Alcoholic Totals Food Products DANGOTE SUGAR REFINERY PLC FLOUR MILLS NIG. PLC. HONEYWELL FLOUR MILL PLC NASCON ALLIED INDUSTRIES PLC N NIG. FLOUR MILLS PLC. TIGER BRANDED CONSUMER GOODS PLC Food Products Totals Food Products--Diversified CADBURY NIGERIA PLC. NESTLE NIGERIA PLC. Food Products--Diversified Totals Household Durables VITAFOAM NIG PLC. Household Durables Totals Personal/Household Products P Z CUSSONS NIGERIA PLC. UNILEVER NIGERIA PLC. Personal/Household Products Totals CONSUMER GOODS Totals FINANCIAL SERVICES Banking ACCESS BANK PLC. DIAMOND BANK PLC ECOBANK TRANSNATIONAL INCORPORATED FIDELITY BANK PLC GUARANTY TRUST BANK PLC. SKYE BANK PLC STERLING BANK PLC. UNITED BANK FOR AFRICA PLC UNION BANK NIG.PLC. UNITY BANK PLC WEMA BANK PLC. Banking Totals Insurance Carriers, Brokers and Services AIICO INSURANCE PLC. CONTINENTAL REINSURANCE PLC CONSOLIDATED HALLMARK INSURANCE PLC LASACO ASSURANCE PLC. AXAMANSARD INSURANCE PLC N.E.M INSURANCE CO (NIG) PLC. UNITY KAPITAL ASSURANCE PLC WAPIC INSURANCE PLC Insurance Carriers, Brokers and Services Totals Micro-Finance Banks NPF MICROFINANCE BANK PLC Micro-Finance Banks Totals Other Financial Institutions AFRICA PRUDENTIAL REGISTRARS PLC CUSTODIAN AND ALLIED PLC FCMB GROUP PLC. STANBIC IBTC HOLDINGS PLC UNITED CAPITAL PLC Other Financial Institutions Totals FINANCIAL SERVICES Totals HEALTHCARE Pharmaceuticals FIDSON HEALTHCARE PLC
tively to the outcome of MPC meeting. At the conclusion of its third meeting for the year yesterday, the MPC decided to hold all rates unchanged. Reacting to the outcome of the meeting, analysts at Afrinvest (W.A) said: “We think the decision to retain all other rates, most especially the MPR is commendable given the fact that sharp rising inflation rate remains
6 6 12
30.00 34.00
12,629 11,640 24,269
374,530.15 421,345.20 795,875.35
19 19 31
1.25
1,078,511 1,078,511 1,102,780
1,358,964.30 1,358,964.30 2,154,839.65
5 68 13 86 86
0.77 1.13 20.47
33,500 6,740,423 65,995 6,839,918 6,839,918
25,070.00 7,635,453.96 1,344,425.15 9,004,949.11 9,004,949.11
13 13
41.50
31,970 31,970
1,409,214.78 1,409,214.78
5 5 18
5.20
28,901 28,901 60,871
154,716.48 154,716.48 1,563,931.26
6 24 7 98 135
2.85 118.85 20.00 99.00
190,900 53,000 15,200 429,541 688,641
528,079.00 6,201,924.95 293,757.00 42,728,789.84 49,752,550.79
9 9
168.50
166,476 166,476
28,285,937.95 28,285,937.95
54 38 6 12 1 29 140
5.61 19.00 1.37 6.86 6.65 1.27
2,120,306 314,421 40,000 119,863 433 3,285,739,119 3,288,334,142
11,610,520.13 5,953,792.96 55,716.00 842,442.48 2,736.56 4,074,348,894.07 4,092,814,102.20
11 54 65
17.86 700.00
18,825 98,360 117,185
329,518.50 68,567,962.00 68,897,480.50
11 11
4.46
99,050 99,050
420,455.00 420,455.00
13 21 34 394
21.90 28.00
36,887 133,117 170,004 3,289,575,498
820,034.75 3,737,067.92 4,557,102.67 4,244,727,629.11
82 51 21 25 200 41 16 147 11 15 67 676
4.10 1.49 15.60 1.21 16.70 1.07 1.76 2.95 5.30 0.63 0.98
3,962,506 2,163,396 278,470 790,900 4,847,312 1,969,858 1,204,932 8,586,418 39,752 501,617 5,920,564 30,265,725
16,210,255.82 3,314,106.88 4,136,459.40 958,864.34 80,963,793.44 2,115,552.11 2,087,767.85 25,302,954.71 205,645.40 316,018.71 5,813,502.17 141,424,920.83
14 8 2 3 7 10 1 1 46
0.80 0.90 0.50 0.50 2.06 0.76 0.50 0.50
200,107 276,500 5,004,000 1,000,000 351,540 327,285 37,708,135 10 44,867,577
160,838.67 251,350.00 2,502,000.00 500,000.00 720,728.80 245,325.31 18,854,067.50 5.00 23,234,315.28
1 1
1.08
4,760 4,760
4,950.40 4,950.40
31 7 105 7 20 170 893
2.46 4.00 0.85 14.15 1.31
1,149,464 27,041 31,257,120 38,035 708,255 33,179,915 108,317,977
2,830,722.84 104,002.06 26,613,309.20 537,985.34 931,556.31 31,017,575.75 195,681,762.26
27
2.69
614,065
1,572,223.05
largely driven by structural bottlenecks in the system. Consequent on the above, yields on fixed income securities are expected to moderate following the decision to hold MPR at 12.0 per cent as against speculation of a likely hike in rates on the back of the pressure on price level which drove inflation to 13.7 per cent in April and resulted in a negative policy real
interest rate. The indication of a flexible exchange rate regime is anticipated to strengthen performance of the equities market.” The added that although the actual impact of the recent move to embrace flexibility in the currency market is difficult to analyse at the moment given that the details of the operation of the planned flexibility is yet to be announced.
E XC H A N G E
MAIN BOARD GLAXO SMITHKLINE CONSUMER NIG. PLC. MAY & BAKER NIGERIA PLC. NEIMETH INTERNATIONAL PHARMACEUTICALS PLC Pharmaceuticals Totals HEALTHCARE Totals ICT IT Services TRIPPLE GEE AND COMPANY PLC. IT Services Totals ICT Totals INDUSTRIAL GOODS Building Materials ASHAKA CEM PLC BERGER PAINTS PLC CAP PLC CEMENT CO. OF NORTH.NIG. PLC PORTLAND PAINTS & PRODUCTS NIGERIA PLC LAFARGE AFRICA PLC. Building Materials Totals Electronic and Electrical Products CUTIX PLC. Electronic and Electrical Products Totals Packaging/Containers BETA GLASS CO PLC. Packaging/Containers Totals INDUSTRIAL GOODS Totals OIL AND GAS Energy Equipment and Services JAPAUL OIL & MARITIME SERVICES PLC Energy Equipment and Services Totals Integrated Oil and Gas Services OANDO PLC Integrated Oil and Gas Services Totals Petroleum and Petroleum Products Distributors CONOIL PLC ETERNA PLC. FORTE OIL PLC. MOBIL OIL NIG PLC. TOTAL NIGERIA PLC. Petroleum and Petroleum Products Distributors Totals Exploration and Production SEPLAT PETROLEUM DEVELOPMENT COMPANY LTD Exploration and Production Totals OIL AND GAS Totals SERVICES Automobile/Auto Part Retailers R T BRISCOE PLC. Automobile/Auto Part Retailers Totals Courier/Freight/Delivery RED STAR EXPRESS PLC Courier/Freight/Delivery Totals Printing/Publishing LEARN AFRICA PLC Printing/Publishing Totals Transport-Related Services AIRLINE SERVICES AND LOGISTICS PLC NIGERIAN AVIATION HANDLING COMPANY PLC Transport-Related Services Totals Support and Logistics CAVERTON OFFSHORE SUPPORT GRP PLC Support and Logistics Totals SERVICES Totals EQTY Board Totals Daily Summary (Equities) Activity Summary on Board ASeM CONSUMER GOODS Food Products MCNICHOLS PLC Food Products Totals CONSUMER GOODS Totals ASeM Board Totals Daily Summary (Equities) Activity Summary on Board PREMIUM FINANCIAL SERVICES Banking ZENITH INTERNATIONAL BANK PLC Banking Totals Other Financial Institutions FBN HOLDINGS PLC Other Financial Institutions Totals FINANCIAL SERVICES Totals INDUSTRIAL GOODS Building Materials DANGOTE CEMENT PLC Building Materials Totals INDUSTRIAL GOODS Totals PREMIUM Board Totals Equity Activity Totals
DEALS
MARKET PRICE
QUANTITY TRADED
VALUE TRADED ( N)
32 4 6 69 69
25.33 0.94 0.69
551,998 16,020 597,000 1,779,083 1,779,083
13,903,164.18 15,299.40 412,110.00 15,902,796.63 15,902,796.63
1 1 1
1.69
500 500 500
805.00 805.00 805.00
16 9 4 6 10 31 76
24.00 9.30 35.78 8.62 3.36 80.50
110,727 40,229 26,700 142,300 299,900 14,373,223 14,993,079
2,707,053.97 362,501.29 992,680.00 1,227,076.00 966,480.00 1,157,057,077.16 1,163,312,868.42
6 6
1.51
134,500 134,500
204,240.00 204,240.00
5 5 87
50.00
24,529 24,529 15,152,108
1,165,135.50 1,165,135.50 1,164,682,243.92
2 2
0.50
24,262 24,262
12,131.00 12,131.00
90 90
3.47
3,827,573 3,827,573
13,288,632.05 13,288,632.05
21 7 8 21 7 64
18.34 1.84 342.00 150.00 145.00
81,125 100,300 20,300 16,295 13,699 231,719
1,505,034.50 182,832.00 6,595,470.00 2,396,080.60 1,959,692.96 12,639,110.06
33 33 189
318.00
389,934 389,934 4,473,488
124,037,602.56 124,037,602.56 149,977,475.67
1 1
0.50
941 941
470.50 470.50
5 5
3.80
32,870 32,870
127,756.40 127,756.40
13 13
0.89
624,500 624,500
538,430.00 538,430.00
1 22 23
2.29 4.00
4,588 251,094 255,682
10,001.84 1,001,583.80 1,011,585.64
1 1 43 1,811
1.68
10,000 10,000 923,993 3,428,226,216
16,000.00 16,000.00 1,694,242.54 5,785,390,675.15
2 2 2 2
1.21
270,464 270,464 270,464 270,464
327,261.44 327,261.44 327,261.44 327,261.44
306 306
11.45
13,929,679 13,929,679
159,605,439.23 159,605,439.23
278 278 584
3.74
10,438,552 10,438,552 24,368,231
39,515,087.18 39,515,087.18 199,120,526.41
35 35 35 619 2,432
139.83
38,770 38,770 38,770 24,407,001 3,452,903,681
5,304,666.00 5,304,666.00 5,304,666.00 204,425,192.41 5,990,143,129.00
2 2 2 2 2 10 10 10
2,330.00 2.33 6.02 11.09 18.07
3,000 20 20 20 15 3,075 3,075 3,075
6,986,000.00 46.70 120.20 221.80 270.65 6,986,659.35 6,986,659.35 6,986,659.35
Daily Summary (ETP) Exchange Traded Fund Name NEWGOLD EXCHANGE TRADED FUND (ETF) VETIVA BANKING ETF VETIVA CONSUMER GOODS ETF VETIVA GRIFFIN 30 ETF VETIVA INDUSTRIAL ETF Exchange Traded Fund Totals ETF Board Totals ETP Activity Totals
WEDNESDAY MAY 25, 2016 • T H I S D AY
53
NEWSEXTRA
FG to Formulate Strategic Plan to Curb Niger Delta Militancy Boroh to relocate to region as ministers, military, others brainstorm on peace, stability Ndubuisi Francis in Abuja and Chiemelie Ezeobi in Lagos Owing to the recent incessant attacks on oil and gas installations by militants in the Niger Delta, President Muhammadu Buhari yesterday said the federal government was currently formulating key strategies on how to tackle the crisis. Buhari made this disclosure at the Nigerian Navy Diamond Jubilee Anniversary and its 2016 International Maritime Conference hosted by the Chief of Naval Staff (CNS) Vice Admiral Ibok Ette-Ibas, at Naval Dockyard in Lagos. With its theme: ‘Enhancing Collaboration for Effective Maritime Security in the Gulf of Guinea,’ the conference was targeted toat tackle other numerous challenges in the Gulf of Guinea. Present at the event were the Chief of Defence Staff, General Gabriel Olonisakin; the Chief of Army Staff, Lieutenant General Tukur Buratai; the Chief of Air Staff, Air Marshal Sadiq Abubakar; the Minister of Transportation, Rotimi Amaechi; Director General Nigerian Maritime and Safety Agency (NIMASA), Dakuku Peterside, and Commandant, National Defence College, Rear Admiral Ilesanmi Alade. Others were the Deputy Governor of Lagos, Dr. Idiat Adebule; Flag Officer Commanding, Western Naval Command, Rear Admiral Ferguson Bobai; Air Officer Commanding, Logistics Command, Air Vice Marshal Muhammadu Muhammed; General Officer Commanding, 81 Division, Major General Isidore Edet and
Commander 9 Brigade, Brigadier General Bulama Biu. The president, who was represented by the Minister of Defence, said the strategic plan, when fully developed, would bring a lasting solution to the crisis in the oil-rich region. This is even as he called for intensified international collaboration to find a lasting solution to other maritime security challenges in the Gulf of Guinea like piracy. Noting that the crisis in the Niger Delta was worrisome, he said by the time the plan is fully developed, the bombing of pipelines coupled with the destruction of oil and gas installations in the region would be a thing of the past. Buhari said the challenges of maritime threats had become critical to the nation, as it had gone beyond the scope of capability of the nation to deal with, adding that the situation came with devastating impact on Nigeria’s operational environment in the GOG, where economic opportunities abound. He said: “We are currently meeting to discuss the recent bombing of pipelines and destruction of oil and gas facilities in the region. Very soon, we will come up with a strategic plan on how to deal with the issue by the time we are through with the meeting. “The Nigerian Navy at 60 has since inception applied only the most optimal policies and strategies to resolve maritime challenges in our maritime areas. “They have remained constant in ensuring sea control and arrest of illegal bunkerers, smugglers, pipeline vandals and other miscreants in the fight against
Metuh Admitted in Hospital, Absent from Court Alex Enumah in Abuja The trial of the former National Publicity Secretary of the Peoples Democratic Party, (PDP), Olisa Metuh, over allegations of corruption and money laundering was yesterday stalled at the Federal High Court sitting in Abuja due to the inability of Metuh to appear in court. At the resumption of trial yesterday, Metuh’s counsel, Onyechi Ikpeazu, told the trial judge, Justice Okon Abang, that his client’s health condition had deteriorated, warranting him to be placed on bed rest at the National Hospital, Abuja. The Economic and Financial Crimes Commission EFCC had in a seven-count charge accused Metuh of receiving the sum of N400million from the former National Security Adviser, Col. Sambo Dasuki (rtd) through his company, Destra Investment Limited. Metuh and Destra Investments Limited are also being tried on charges of money laundering involving alleged cash transaction of $2million. Justice Abang had on Monday adjourned till yesterday for the continuation of the testimony of the fifth defence witness (DW5), Mr. Richard Ihediwa. Ikpeazu sought for an
adjournment on the matter on the grounds that section 352(4) of the Administration of Criminal Justice (ACJA), 2015, in which the judge is allowed to proceed with a criminal trial without the defendant’s presence in court, had not arisen. Ikpeazu then passed a medical report signed by a neurosurgeon consultant in the hospital, Dr. O.O Olaleye, to the court registrar, confirming that Metuh was in the hospital on bed rest. However prosecution counsel, Slvanus Tahir, who was reluctant to oppose the application, drew the court’s attention to section 266(a) and (b) of the ACJA which makes it mandatory for a defendant to be present in court whenever his trial comes up. After listening to the submissions of counsel, the trial judge noted that though the 1st defendant had a good reason to be absent from court, the medical report however was not helpful, as it failed to indicate a time frame for the bed rest. He said the omission of the duration of the rest in the report had left doubt as to whether the report was issued in bad faith. Abang however conceded to the request and adjourned to May 30 for continuation of the trial.
illegalities in the nation’s maritime domain and beyond. “But the situation has gone beyond our capability to handle. It, therefore, calls for greater international collaboration between the navy and other international maritime stakeholders. “This conference, however, is relevant to appraisal of multi national approaches to enhancing collaboration for effective maritime security in the GOG. I urge you to keep the flag flying and the government is solidly behind you.” In his remarks, the CNS, Vice Admiral Ibas, said the conference would discuss on how find lasting solution to maritime challenges in the country and in African, particularly at the GOG. Ibas said the maritime crimes and threats at the GOG call for serious concern as the affected economic life line of member states, adding that these maritime threats have
become transnational and have gone beyond the capability of one nation to contain. In his address, Lagos State Governor, Akinwunmi Ambode, who was represented by his deputy, said the international waterways has always been the main corridor through which international commerce had nurtured relations among foreign countries. He said the challenges of pirates which had accounted for about 30 per cent of attacks in African regional waters between 2003 and 2011 had become a recurrent issue affecting commercial shipping and trade activities of countries. According to him, the economic benefits that abound in maritime trade for African nations and investors can only be fully realised with the safety and security of the offshore boundaries. Also speaking, Akwa Ibom State
Governor Emmanuel Udom, who commended the Nigerian Navy for their patriotic zeal and role in strengthening national security, also pledged to donate two gun boats to the navy to enhance sea patrol and keep the waters safe. Meanwhile, an inter-agency committee on peace and stability in the Niger Delta brainstormed in Abuja yesterday in continuation of series of multi-sectoral consultations and meetings aimed at ending the resurgence of militant activities in the region. Yesterday’s meeting was hosted by the Minister of Niger Delta Affairs, Mr. Uguru Usani Uguru, under the auspices of the Technical Committee on Peace/Stability in Niger Delta. In attendance were the Minister of State for Niger Delta Affairs, Prof. Claudius Omoleye Daramola; very top officials of the Nigeria Police Force, Navy, Army, Ministries of
Information and Culture, Defence, Petroleum Resources, and the Department of State Service (DSS). Others are the Amnesty Office, Institute for Peace & Conflict Resolution, Nigeria Immigration Service, Nigeria Security and Civil Defence Corps, Naional Drug Law Enforcenent Agency (NDLEA), and the Nigeria Customs Service (NCS). At the meeting, Uguru stated that the increased attacks on oil and gas installations in the region was indicative that the perpetrators were bent on not only frustrating the administration of President Muhammadu Buhari, but to torpedo the continued existence and survival of the people of the resource-rich Niger Delta. Uguru regretted the scope of destruction being visited on the national assets in the wake of the renewed agitation by the militant
Cont’d on page on 56
LEGISLATIVE VISIT
L-R: Chairman, House Committee on Capital Market and Institutions, Hon. Yusuf Ayo Tajudeen; Minister of Finance, Mrs. Kemi Adeosun; Chairman, Senate Committee on Capital Market and Institution, Senator Isiaka Adeleke; and Vice-Chairman, Senate Committee on ICT and Cybercrime, Senator Foster Ogola, during a visit of the Joint Committee of the National Assembly on Capital Market to the minister in her office in Abuja...yesterday
FG Confirms Six States Hit by ‘Tomato Ebola’ Ogbeh: Nigeria spends N80bn on importation of tomato paste yearly James Emejo in Abuja The federal government yesterday confirmed the six states hit by a pest called the Tomato Leaf Miner or Tuta absoluta, commonly referred to as ‘Tomato Ebola.’ The states are Jigawa, Kano, Katsina, Kaduna, Plateau and Lagos. The Minister of Agriculture and Rural Development, Mr. Audu Ogbeh, revealed that the pest responsible for the massive destruction of tomato in farmlands had currently invaded six states of the federation. Speaking at a press briefing in Abuja, he described as erroneous, claims that tomato processing factories had mopped-up tomato fruits in country. He said the highly reproductive nature of the tomato pest coupled with favourable environment and lack of management knowledge
for containment had resulted in its spread without resistance, leading to the destruction of tomato fruits in Jigawa, Kano, Katsina, Kaduna, Plateau and Lagos. Notwithstanding, he said the federal government had started consulting with states and experts to seeks measures to tackle the pest.” He disclosed that the country spent N80 billion ($400 million) annually on importation of tomato paste, many of which highly substandard. The minister said: “The pest can also attack even pepper and Irish potato. So we are confronting something quite serious. But the good thing is that we are tackling it right now as experts will commence work immediately. We are bringing the commissioners and governors of states to jointly attack this pest, which if not dealt with, will create serious problems for food security
in our country.” He said:”We have two processing plants for tomato paste in Nigeria, Erisco and Dangote, and their capacities are huge. We welcome their arrival because our annual import bill of tomato past is about $400m and it is a good sign that we can now produce here and make money for our farmers.” He added that experts had already offered other varieties of tomato that grow well in the western part of the country as alternatives to the existing genre. Ogbeh said the pest (tuta absoluta) was discovered in South America in 1912 where it ravaged many farms before it spread to Europe and then to Asia and now to East and West Africa. According to him, the pest came into the country from Niger Republic and manifests a
powerful infestation that could make it impossible for the country to grow tomatoes, if not dealt with. He added that said the price of tomatoes had gone so high that a basket now sold for between N35, 000 to N42,000 in Lagos as a result of the pest attack. He said:”We have called in experts and we have studied the profile of what we have to do with the pest. Unfortunately, ordinary pesticides cannot deal with this `tuta absoluta’ because it has a way of multiplying so fast. It produces almost 250 offspring per cycle; we are in contact with a group which had dealt with this in other countries and they are offering us solutions. In the next few days we shall get to work on this and begin treatment. It is going to be quite expensive as it will cost about five naira per tomato plant.”
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WEDNESDAY MAY 25, 2016 • T H I S D AY
NEWSEXTRA
Nigeria, Others Should Look Inward for Resources to Avoid Debt Trap, Says AfDB Osinbajo: We must prioritise devt of natural resources over climate change concerns Kunle Aderinokun in Lusaka, Zambia Since income accruing from crude oil and others commodities, currently dwindling, would always
be subjected to the volatility of prices at the international market, African Development Bank (AfDB) has advised Nigeria and other African countries to look inward to mobilise resources for development.
Oil Drifts Lower on Stronger Dollar Oil dipped yesterday as a stronger United States dollar and progress in controlling wildfires in Canada’s crude-producing Alberta province dampened prices. At around 1100 GMT, US benchmark West Texas Intermediate for July delivery was down 20 cents at $47.88. Brent North Sea oil, the European benchmark, for July delivery slid 29 cents at $48.06. “Crude prices continue to roll over as supply outages in Canada and Libya begin to ease, leaving little fundamental support for oil, save an ongoing strike by French oil workers,” noted Accendo Markets analysts in a note to clients. In addition, hawkish remarks by US Federal Reserve officials hinting at a June interest rate hike pushed up the greenback against major currencies, pushing oil lower. “A stronger US dollar continued to extend pressure on commodity prices,” added CMC Markets analyst Margaret Yang. A stronger greenback weighs down oil prices, as it curtails demand by making the dollarpriced commodity more expensive.
Prices have rebounded since plunging to near 13-year lows below $30 in February but are still well short of peaks of more than $100 a barrel reached in June 2014. There are market concerns that a supply glut may return following news of Canada lifting evacuation orders for several oil production sites in fire-ravaged Alberta province amid cooler weather and light rain. Prices were also weakened this week by comments from Iranian officials who vowed to keep up oil production after the lifting of Western sanctions in January. “$50 appears to be the resistance level because there seems to be not enough of a will to boost it any higher,” IG market strategist Bernard Aw told AFP. All eyes are now on the OPEC meeting in Vienna on June 2 where it is hoped an agreement to cut production can be reached, Aw said. The market is also keeping an eye out for inventory data from the American Petroleum Institute, which is due later yesterday, followed by US Energy Information Administration figures today.
According to the bank, in so doing, the risk of falling into debt trap, would be at he barest minimum. AfDB President, Akinwunmi Adesina, gave this advice yesterday at the formal opening of the 2016 Annual Meetings of the bank, which was attended by heads of state, ministers, business leaders and captains of industry, and the civil society, in Lusaka, Zambia. Adesina, who acknowledged that despite the challenges being faced by countries occasioned by the plummeting prices of oil African economies remained resilient, sounded a note of caution that, governments across the continent, must not get into a debt crisis in a bid to continue to remain resilient. “Increasingly, many African countries, taking advantage of the low global interest rates, have rushed to the international capital markets by issuing bonds. Between 2006 and 2014, African nations issued $26 billion in Eurobonds. In 2015 alone, a total of $12 billion of Eurobonds were issued. With rising interest
rates, African countries now face a challenge of high cost of financing the foreign currency denominated debt,” he pointed out. He believed “an indebted Africa cannot be a rising Africa.” Given this scenario, he urged African countries to “look inward and mobilise domestic resources for development,” pointing out the “need for urgent measures to ensure macroeconomic stabilisation, fiscal consolidation, broadening of the tax base, and deepening of the domestic capital markets.” According to him, “they should find better ways to securitise remittances which reached $62 billion in 2014 - an amount that exceeds official development assistance. They should leverage Sovereign wealth funds which stand at $162 billion, domestic tax revenue estimated at $500 billion annually, private equity funds which stand at $20 billion per year, and pension funds estimated at $334 billion. “We must also end the illicit capital flows that deny Africa over $60 billion a year. Money belonging to the citizens should not be found in personal accounts.
These are all significant financing sources that should be effectively channeled for development.” Adesina noted that, “by doing so, we will help to drive Africa’s readiness for industrial development. “Just last week we were all in Kigali at the World Economic Forum, hosted by President Paul Kagame, discussing the 4th industrial revolution. Africa must improve its readiness index for the digital revolution. We must rapidly build skills, scientific capacity, especially in sciences, technology, mathematics and engineering. “Africa has missed on the earlier industrial revolutions. We cannot miss the 4th industrial revolution. To avoid this, Africa needs energy, to power its industries. Like blood is to the body, so is power to industrial growth and development.” Speaking on the ‘New Deal on Energy for Africa’, Adesina reiterated that to deliver on the deal, AfDB would invest $12 billion in the energy sector over the next five years and leverage $45-50 billion into the energy sector.
Already, he pointed out that, “In 2015, the Bank provided $1.3 billion for energy projects. The bank has continued to lead the way and financed renewable energy projects, including the 300 MW Lake Turkana wind power station - the largest wind power plant in Africa. We supported the Noor complex, the world’s largest concentrated solar power plant in Morocco with capacity to provide power for over one million homes by 2018. The bank financed the power interconnection to link Ethiopia, Kenya and Zambia, expanding regional power pools. In December 2015, we provided $138 million to finance the Ruzizi III 147 MW power plant, to provide el ectricity to Rwanda, Burundi and Republic of Congo.” Speaking at ‘African Leaders Roundtable of Energy and Climate Change’, Vice President Yemi Osinbajo urged African leaders to exploit and prioritise development of the abundant resources including coal and fossils, in the continent and bother less about the concerns of climate change.
NHRC Says Military Now Observes Rules of Engagement During Clash with Insurgents Tobi Soniyi in Abuja The National Human Rights Commission’s involvement in the fight against insurgency has impacted on the professionalism of the Nigerian military so much so that the rules of engagement with the insurgents are now being observed by the military to avoid civilian casualties. The Executive Secretary of the Commission Prof. Bem Angwe, made this statement when the Regional Representative of the United Nations High Commission of Human Rights, Mr. Andrea Ori, led a team of human rights experts on a courtesy visit to the commission. Angwe also acknowledged the support of the UN system especially the UNDP and UNHCR which he noted had deployed monitors to the North-east and the Northcentral states for the purpose of monitoring human rights situation of the Internally Displaced Persons (IDPs) in the area. He also informed the UN delegation that the commission had continually engaged the federal and state governments on the need to provide entrepreneurial skills to the IDPs while facilitating their safe and voluntary return to places that
are safe and habitable. Angwe who also doubles as the Chair of the Network of National Human Rights Institutions in West Africa (NNHRI-WA) would be organizing a confab on Human Rights and Terrorism which would point the way forward as well as evolve measures to re-integrate victims of terrorism. Towards this end, Angwe said the Executive Secretary of the sub-regional body, Mr. Saka Azimazi would give an update on the reports of human rights situation of member states before the Annual General Assembly to take place later in the year. Earlier, the Regional Representative of United Nations High Commissioner for Human Rights, Mr. Andrea Ori commended the commission for protecting the electoral rights of Nigerians and ensuring a successful advocacy against electoral violence during the 2015 general election. The UN envoy noted that the commission underAngwe had made giant strides towards entrenching a culture of human rights to the extent that respect for the sanctity of the electoral process has come to stay in Nigeria and urged other countries in the sub-region to borrow a leaf from this.
WE WANT YOU TO DO A GOOD JOB
Senate President, Dr. Abubakar Bukola Saraki (middle) in a handshake with the Chairman Technical Committee on Railways Reform Bill, Mr. Chris Okoye, during the committee’s visit to the senate president in Abuja ....yesterday. With them is the Chairman, Senate Committee on Land Transport, Senator Gbenga Ashafa
Coalition Pushes for Early Passage of Competition Bill Eromosele Abiodun and Marry Ekah A private sector coalition comprising the Nigerian Employers Consultative Association (NECA) and other business membership organisations have called for the immediate passage of the Competition Bill currently before the National Assembly. The coalition stated this yesterday when they paid a courtesy visit to the Corporate Head Office of THISDAY Newspapers in Lagos. The leader of the coalition, Leonard Ugboaja, stated that a country like Nigeria that is transiting from public sector domination to a private sector driven one, needs
such law to stop abuses. He called on all Nigerians to support and the part of the public hearing on the competition bill coming up on May 31. The bill, he stated, would among other things, promote job creation and attract foreign and local investors to invest in the country. According to him, “Competition policy sets out the broad vision of measures aimed at promoting and regulating competition in the economy. Competition is good for every economy and is mainly the logic behind private sector led market economic model. In an economy like Nigeria that is transiting from public sector domination to a private sector
driven one, competition does not just happen. There must be some policy measures to promote competition. Such measures include privatisation of state owned enterprises, deregulation of otherwise regulated monopolies and progressive liberalisation of trade.” He added: “Competition policy sets out the goal of promoting competition in the economy. It can be contained in a distinct policy document or runs through several sector specific policy documents. Broadly speaking, competition policy runs through such policy areas as trade and industrial policy, investment policy, privatisation and deregulation policy, consumer
protection policy. Competition law sets out the rules that regulate that regulate the operation of commercial entities within the economy so as to ensure that virtues of competition are not impeded.” Nigeria, he added, has gone through the first stages of enthroning a competition culture but stopped the journey half way. This, he stated, has caused all manner of distortions in different sectors of the economy, adding that this was why the private sector needs to advocate for the necessary regulatory framework to ensure that competition is promoted and properly regulated in the different sectors of the nation’s economy.
WEDNESDAY MAY 25, 2016 • T H I S D AY
55
NEWSEXTRA
Adeosun: FG Determined to Cut Cost of Governance Says govt saved N185bn from IPPIS, gets rid of 65,000 ghost workers Ndubuisi Francis in Abuja with agency report The federal government has reaffirmed its commitment to reduce the cost of governance through fool-proof automated payroll system. The Minister of Finance, Mrs. Kemi Adeosun and the Director, Special Projects in the ministry and Head of the Continuous Audit Task Team, Mohammed Dikwa, gave the reassurance in Abuja yesterday while briefing journalists on the series of meetings with heads of the paramilitary agencies on the need to hook up their payroll to automated platforms such as Integrated Payroll and Personnel Information System (IPPIS) and Government Financial Management and Information System (GFMIS). The agencies included the Nigeria Immigration Service, Nigeria Security and Civil Defence Corps (NSCDC), Nigeria Prison Service, Federal Road Safety Commission (FRSC), and Federal Fire Service. Adeosun noted that in compliance with the directive by President Muhammadu Buhari, every ministry, agency would be incorporated into the automated platforms in order to guarantee a transparent financial control system devoid of leakages. She noted that a situation where the government commits about N165 billion monthly on wage bill alone was unsustainable, adding that all leakages that are capable of reducing the cost of governance would be plugged. Adeosun said it was imperative that every employee of the federal government is under the automated system, point out that it was the only way to ensure integrity and easier financial control. Dikwa, who also spoke on the need to reduce cost of governance,
said a situation where 70 per cent of the entire budget is devoted goes to governance was not good enough and must be reversed. “We are sure we are going to reduce the cost of governance,” he said, adding that since the commencement of he continuous audit, N50 billion had been saved while 43,000 ghost workers had been weeded out. Meanwhile, the Director-General, Bureau of Public Service Reforms, Dr Joe Abah, has said the federal government has saved over N185 billion since the implementation of the Integrated Payroll and Personnel Information System (IPPIS). Abah according to the News Agency of Nigeria (NAN), said this while presenting the ‘Status Report of Reforms’ at a five-day Specialised Reforms/SERVICOM Training Programme in Abuja yesterday. He said a lot of remarkable reforms had taken place in the civil service, including removal of 65,000 ghost workers from IPPIS. “We started off with a completely inaccurate and unreliable payroll system since we put IPPIS in 2007, government has saved in the region of N185 billion and weeded 65,000 ghost workers. “Recently, the Work Efficiently Unit has seen the identification of another 23,000 people that were collecting multiple salaries. “IPPIS has been a great success but it has some challenges and it has some weakness. “One of the weaknesses is that as soon as BPE put in place IPPIS after piloting it for a couple of years, it was basically taken over by accountants and they started with payroll instead with the HCSC – Head of Civil Service Commission. “It is possible to get on the payroll without being known by the Federal Civil Service
FG to Repatriate Stolen £300m from Jersey The Minister of Foreign Affairs, Mr. Geoffrey Onyema, has said the federal government is in the process of repatriating stolen £300 million pounds from Jersey. Jersey is the largest of the Channel Islands located between England and France. It is an Englishspeaking territory with a mix of British and French cultures. Speaking at a news conference organised as part of activities to mark the one year anniversary of President Muhammadu Buhari’s administration, the minister said the money in Jersey would have been repatriated but for a last minute ‘objection’ that was raised by the people, who were supposed to forfeit it. Onyema,accordingtoTheCable,said: “Wearejustintheprocessofrepatriating that in the UK itself. Sometimes very often what happens is that the people, who have ownership or who claim to have ownership (of the money) might bring up a defence,” he said. “Like if you take the one in Jersey, it is like 300 million pounds or thereabouts; now everything had been done to repatriate the money. “It was no longer contested;
and then at the last minute, an objection was raised by the people, who were supposed to forfeit those funds. “So, of course the authorities in Jersey were obliged – as much as they would have liked to just go ahead and repatriate it – to go through certain legal procedures, because the other party would have a lawyer and there were legal issues. “And then we have to now start going through that all over again; so that is really the challenge.’’ Onyeama said Nigeria would not relent in seeking to repatriate the alleged stolen funds. He also said that the process of repatriation of looted funds stacked in other countries like Switzerland and US was in progress. “It is something that takes time – repatriation of stolen funds – because very often, you have to have an idea; you have to work on lead,” he said. According to him, the repatriation of all other funds is in progress even though the Western countries where the stolen funds have been taken to are creating barriers that will make it difficult to repatriate the monies.
Commission that is why we still have issue with IPPIS but we are working on that and we hoping that complete HCSC switch will come on board in July,” the DG stated. He said the BPE was also working with the Efficiency Unit to ensure that the salaries were linked with the Bank Verification Numbers. Abah said the civil servants shouldn’t allow people to accuse
them of not doing well, saying that some of the reforms were working in spite of challenges. He said one of the reforms that had also worked in the civil service was the Contributory Pension Scheme. “Before 2004, if you retire; you will be entitle to a pension whether you actually get it, it is another matter because at 2004, we had pension deficit of N43 billion. “So, the really chance is that you
could retire but wait for 10 years and you will actually not see the Contributory Pension Scheme; our pension pot is now credit of N4.8 trillion as at 2015. “However, there are still challenges – we are still not managing our Pension Funds Administrators (PFA) very well. “There is still a big gap between when you retire and actually when you start to get a pension sometimes a gap of
about nine months – that is still a gap, we still need deal with.’’ Abah further said in terms of procurement, government was losing 10 billion dollars annually as result of fraudulent procurement practices. He said of every one naira you spend, 60 kobo went into fraud. According to him, since putting in place Procurement Act in 2007, the government has saved more than N650 billion.
MEDIA TOUR
L-R: Executive Director, Corporate Services, THISDAY Newspapers, Mr. Emmanuel Efeni; Deputy Managing Director, Mr. Kayode Komolafe; and Chairperson, Institute of Chartered Secretaries Administrators of Nigeria (ICSAN), Lagos chapter, Mrs. Abiola Laseinde, during a courtesy call by the executive committee of ICSAN to THISDAY Head office in Lagos ....yesterday Mubo Peters.
Britain Laid the Foundation for Corruption in Nigeria, Says Senior Lawyer
Prosecution Abruptly Closes Case against Orubebe after Calling One Witness
Tobi Soniyi in Abuja
Tobi Soniyi in Abuja
A Senior Advocate of Nigeria (SAN), Mallam Yusuf Ali, has said colonial governments including the British laid the seed of corruption in Nigeria and other African countries. Ali, who spoke in Abuja yesterday at an interactive session on corruption organised by the Nigerian Bar Association (NBA) to find practical ways to end corruption in Nigeria said that the way and manner the British colonialists deceived our forefathers to collect their lands from them sowed the seed of corruption in Nigeria. The senior lawyer said he accepted the statement credited to British Prime Minister, David Cameron that Nigeria is ‘fantastically corrupt’, however, he said the British were blame worthy for introducing corrupt practices into Nigeria. He said: “According to some writers, corruption became deeply embedded and became a norm in the Nigerian society because of the historical accident of colonialists. “The right of the European colonialists to rule in Nigeria had no moral basis in our tradition, convention or myth. It was grounded purely on conquest by force of arms, or cession obtained by undue influence and corruption.” Ali said one of the greatest legacies the imperialists transferred
to Nigeria at independence was corruption. He cited the works of other writers who had carried out research into the issue to support his argument. He suggested that the constitution be amended to make the declaration of assets by public officers a public issue. According to him, the present practice of secret declaration of assets is of no use in the fight against corruption. He noted that lack of access to information remained an obstacle in the fight against corruption adding that corruption thrived in obscurity. He suggested that the government activities should be done transparently. He further suggested that: “Law enforcement agencies must be thoroughly cleansed, restructured and highly motivated, the judicial system must be strengthened and the rule of law must be entrenched. “We cannot make progress with the fight against corruption as long as there is so much impunity in the land, with many seemingly operating above the law. We must mount a vigorous campaign against impunity.” Ali further noted that institutions established to fight corruption were also ridden with corruption.
The prosecution has closed its case of alleged breach of the code of conduct for public officer filed against former Minister of the Niger Delta, Godsday Orubebe, at the Code of Conduct Tribunal (CCT). The federal government had October last year filed a four-count charge bordering on false assets declaration and demanding and collection of bribe of about N 70 million against the foramer minister. However, when it became clear that government could not substantiate the allegations contained in the charges, it amended the charge and reduced to only one. At previous hearings before the amendment, the tribunal called on the state to call its witnesses but was unable to produce one and instead applied severally that the hearing be adjourned. Yesterday, when the trial resumed, the prosecution counsel, Ejike Orji, told the CCT that ‘‘having review the case, we felt there is no further course to call for any other witness in this matter, to this we humbly apply to close our case for the prosecution.’’ The defence counsel led by Selekowei Larry (SAN), when
called to open the defence of accused expressed surprise, saying that he was expecting the prosecution to call its second witness. He therefore prayed the tribunal for an adjournment to enable him open his client’s defence, subject to the convenience of the tribunal. The tribunal chairman, Danladi Yakubu Umar, obliged the application of the defence counsel, by adjourning to May 31, 2016 for the accused person to open his defence. The amended one-count charge against Orubebe read: “That you, Godsday Peter Orubebe, on or about June 29. 2015, while being a minister of the Federal Republic of Nigeria in charge of the Ministry of Niger Delta Affairs, at Abuja within the jurisdiction of this tribunal, did make a false declaration of assets to the Code of Conduct Bureau (CCB) when you failed to declare Plot 2057, Asokoro District, Abuja on assumption of office on September 26, 2007 and on leaving office (at the end of your tenure on June 29, 2011) and you thereby committed an offence contrary to section 15 of CCB and Tribunal Act Cap C15 Laws of the Federation of Nigeria 2004 and punishable under Section 23 ( 2) of the same Act.” Orubebe had pleaded not guilty to the single count charge.
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Committee: Sokoto Requires 9,000 Teachers to Meet Standards Mohammed Aminu inSokoto Sokoto State requires additional 9,000 teachers to meet the global
standard of 1:40 teacher-pupil ratio in its classrooms at the primary school level. Presenting an interim report to
NAF to Fit Drone with Missile Guided Weapon’s Systems Senator Iroegbu in Abuja The Nigerian Air Force (NAF) has concluded plans to advance its drones fitted with missile guided weapon’s systems. The Chief of Army (CAS), Air Marshal Sadique Abubakar, disclosed this yesterday in Abuja, during a meeting with the management of the National Space Research and Development Agency (NASRDA). According to Abubakar, NAF would take advantage of “existing Memorandum of Understanding (MOU) with NASRDA to fasts track collaborative measures to improve the air force rocketry and missile propulsion systems.” He noted that research and developmentarekeyfortheadvancement of organisations and rise of nations into super powers. To this end, the CAS stressed that “advancement in military technology has monumental influence in the battle field in which the air force plays a significant role.” He further disclosed that NAF under his leadership would push
for initiatives that will enhance the capacity of air force helicopters and UAVs to target as well as deliver missiles and rockets from a very long range. Also speaking, the Director of Engineering and Space Systems in NASRDA, Dr. Femi Agboola, promised that the agency had the capacity to improve the missile propulsion needs of the air force. Agbola said that “NASRDA has the capability to deliver on what the chief has requested;thechiefhasstudied us for some time like he said since 2013, he has a feel of our capability.” He said: “The chief talked about armaments, he talked about rockets and about missile programmes, we have a rocket that goes beyond the level that he has requested, he said about five kilometres, we have already gone beyond that. “We are already working on how to guide it, not just point and shoot straight line, but to be able to make sure it goes intelligently to another location and that is what we are being asked for and we are already working on that.”
Ogoni Traditional Rulers Kick as Army ArrestsYeghe Leader, Gbaranee Ernest Chinwo in Port Harcourt Soldiers from the 2 Brigade Nigerian Army, Port Harcourt, stationed in Bori, Rivers State on Monday arrested the Paramount Ruler of Yeghe community in Ogoniland, Barinaadaa Gbaranee. Yeghe community, in Gokana Local Government Area of Rivers State has been a hot-spot of army operations since the army invaded the community in February in search of ex-agitator, Solomon Ndigbara, whom the military has since declared wanted. Not less than 20 persons were allegedly killed in the military operation, even though the army said nobody was killed. The Assistant Director Army Public Relations, 2 Brigade Nigerian Army, Port Harcourt, Capt. Eli Lazarus, confirmed the arrest of the Ogoni traditional ruler. He however said the army “invited” Gbaranee for questioning concerning an investigation it was carrying out. In a text message yesterday, Lazarus said, “The paramount ruler of Yeghe Community, Barinadaa Gbaranee was invited by 2 Brigade Nigerian Army in connection with an on-going investigation that relates to security within his domain. I assure you that he will return to his community as soon as investigation is completed.” In the meantime, the Council of Ogoni Traditional Rulers (COTRA) has condemned Gbaraanee’s “abduction” and called for his immediate release. The Chairman of COTRA, King Suanu Baridam, in a statement issued yesterday said, “We consider the abduction of Chief
T.D. Gbaranee, a desecration of the highly respected traditional institution and strongly reject the humiliation of an Ogoni traditional stool by the army. “We demand the immediate release of Chief Barinaadaa T.D Gbaranee and expect that if there be any issues regarding his conduct, he ought to be treated with respect, decency and in a dignified manner with an invitation, if that fails, the issue should be brought before the Council of Ogoni Traditional Rulers, if that fails, the issue be brought before the Rivers State Council of Traditional Rulers, the failure upon which further actions can be taken.” He said the “abduction and embarrassment of Chief Barinaadaa T.D. Gbaranee, a government-recognised traditional ruler and member of the Rivers State Council of Traditional Rulers, a member of the Council of Ogoni Traditional rulers, is unacceptable to the entire Council of Ogoni Traditional Rulers.” He added: “We accuse the army of dubious intentions and alert the Nigerian people and the international community of clear genocidal intentions against the Ogoni people and particularly the Yeghe people. “We note that the actions of the Nigerian army in Ogoniland in recent times following the raids and killing of over 20 persons and subsequent raids on the peaceful and law abiding citizens of Yeghe calls for serious questions regarding the credibility and intentions of the army’s presence in Ogoniland.”
Governor Aminu Tambuwal in Sokoto yesterday, the Chairman of the Technical Committee on State of Emergency in Education in the state, Prof. Risqua Shehu, said 11,863 more primary school classrooms were required to congest the existing ones in order to decreate a condusive atmosphere for learning. He said with a total number 1,193,760 pupils enrolled at basic education level for the 2015/2016 academic session, the teacher-pupil/ student ratio in Sokoto presently stands at 1:66. Shehu pointed out that even though there is fairly a large percentage of teachers with high
qualifications in primary schools, over 60 per cent of them did not have the required certification to teach at basic education level, while about 60 per cent of teachers in junior secondary schools teach in urban areas, leaving rural areas under staffed. He disclosed that there were more teachers in arts and social sciences than sciences, English and mathematics. “Not more than five per cent have recommended computer studies and technical trade textbooks. Again, only 11 per cent of the students have relevant textbooks in mathematics while
less than 15 per cent of them have mathematical items such as graph boards, protractors, compasses and geometrical materials (solid figures). “Out of the 39 technical/ commercial trades identified by the federal government as contained in the 2013 NPE, only nine are being offered in the state’s senior secondary,” he said. Shehu said as a way out of the problem, government should embark on recruitment of more teachers, with emphasis on female teachers who will serve as role models, especially in rural areas. For the 2015/2016 academic session, he recommended the
recruitment of 800 female teachers, followed by 1,200 in the 2016/2017 academic session while 1500 should be recruited in the 2017/2018 academic session. He also urged the government to embark on massive computer literacy programme for all SS3 students before they sit for the Joint Admission and Matriculation Board (JAMB) examination in April 2017. In a remark, Tambuwal said the need to revive the education sector necessitated the setting up of the committee, adding that everything possible would be done to revert the negative trend.
SEEKING FOREIGN COLLABORATION
Yobe State Governor, Alhaji Ibrahim Gaidam (left) with Director of International Recruitment, University of Sussex, Prof. Richard Follet, during the governor’s visit to the university in Brighton, United Kingdom, to explore areas of academic cooperation with the Yobe State University...yesterday
FG TO FORMULATE STRATEGIC PLAN TO CURB NIGER DELTA MILITANCY group, Niger Delta Avengers, in the region. Describing the current attacks on oil/gas facilities by suspected militants as sabotage, he urged the committee to be unified “in our opinion that those who do these things are saboteurs of the country. “In certain countries, economic crimes are capital offences. And even if it is not so in Nigeria, in our own conscious mind, we should be able to perceive what is happening with intensity of that conviction that these people want not only to frustrate the administration but to hinder continued survival and existence of the people. “If it said that the clean up of Ogoni land alone is going to take 25 years, it means a child is born today by the time they will finish that work the would have been a graduate and probably workiing. “But what is strategically more important is what we will exchange within ourselves, because that will lead to operational action. So far, we have being carrying out activities to locate the people directly responsible,” he said. On whether the Niger Delta Avengers has reached out to government with any demand, he said: “They have not reached out us to say what they want but we have been interacting with them. And most of the time, what we understand them to be wanting is what we can’t afford. “Because we want something sustainable and that is why we are
now making sure that whatever we do, is what is morally standard to sustain the peace. We don’t want to carry out any palliative action that cannot stand the taste of time,. “You are aware that some months ago, we met with representatives of the various departments of interest in the region and department of security concerns. We had being waiting to get permanent nominees from the different agencies in order to be able to assign ourselves roles to play. “ We have had this names complete a while ago but different intervening engagement had not allowed us to call you all together as quickly as we intended to. Essentially at wake of what is being observed now, we have not only been concerned about how we go about the activities but we want, to see that we draw up a framework assessment of our activities in the region to secure the region for peaceful operation of our economic activities,he added.. The reason for yesterday’s meeting, he said, “is that we are going ro get into the sensitive phase of the work that we need to do. The reason we have this interface between administrative agencies, intervention agencies and security agencies is because the work in the region entails much more than operational activities in the field. “But there are other factors that are required if peace in the region must be achieved and sustained. I want to sound my own appreciation of the situation. I do not think that we will assume that after one, two, three activities, the situation is going
to get down to normal. “My perception of the situation is that, it is likely to continue to be what it is. Our activities will determine how it easy down or the intensity on which they will operate. “The background of that presumption in my mind is that-what I seem to understand is that, there is no obvious, tangible, object or consideration of this agitation. I think from what we gathered, from informal interactions and some espionage activities we are trying to carry out “Some people who think they are not gaining enough from the government would try to break up
from the camps they have belonged to and then seek recognition by thee violence, so they also will establish a new camp, for which they could probably win pipeline protection contracts. “There are several conspiracies, some other suggesting that some politicians who want some form of displacement are responsible also in some ways for what is happening. Others suggest that the contractors who maintain the pipelines, most of the times, go behind, when there is no such eventuality to create it so they can win another contract.
DHQ: Military Presence in Gbaramatu is for Security of Citizens Senator Iroegbu in Abuja The Defence Headquarters (DHQ) has said their presence in the Gbaramatu Kingdom of Delta State and other parts of the country is to ensure the security and protection of the citizens. The Director of Defence Information (DDI), Brig-Gen. Rabe Abubakar, stated this yesterday in response to the allegations that the military was harassing the Gbaramatu people. Abubakar debunked the accusations that the troops had laid siege in the communities, restricting freedom of movement of the residents. According to him, the presence of security forces is to wade off the
ongoing threats to national security and oil installations around the area. “The military presence in any part of our country is for security and ensure the protection of innocent citizens and their property and government infrastructure around any location be it in Niger Delta or anywhere where insecurity and threats to national security,” he said. The Defence spokesman waved aside the allegations, as a blackmail from the few “unpatriotic criminals.” The presence of military, he said, is good for all. “However the insinuation from few unpatriotic who wants to continue with their criminal activities are the ones making this blackmailing calls on papers and other channels,” he stated.
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Ambode Unveils $70m Oshodi Transport Interchange Pledges to protect marketers, transport workers Gboyega Akinsanmi Lagos State Governor, Mr. Akinwunmi Ambode, yesterday
unveiled the Oshodi Transport Interchange designed to transform Oshodi to a worldclass transport centre and end all
Borno Emirs Return Home, Two Years after Fleeing Boko Haram Insurgents Two out of the five Borno emirs forced to flee their domain by Boko Haram terrorists, have returned to their palaces. The News Agency of Nigeria (NAN) reported that the emirs fled to Maiduguri two years ago when the insurgents took control of their domain in Askira/Uba Local Government Area of the state. The insurgents took control of the area in August 2015 and announced establishment of Caliphate rule, forcing residents including the emirs to flee. The insurgents were however mauled down by the military who took total control of the area and restored normalcy. The two emirs, Alhaji Muhammadu Askirama of Askira, and Alhaji Ismaila Mamza of Uba, returned to their respective palaces yesterday in company of Borno Deputy Governor, Alhaji Mamman
Durkuwa. Speaking at a short ceremony at their palaces, the emirs commended the Nigerian military for their gallantry in routing the Boko Haram terrorists. They expressed optimism that terrorism would end soon in the country, going by the successes being recorded by the military. Also speaking, Durkuwa assured the emirs that the government would undertake projects to restore life back to the area. The deputy governor urged residents to be law abiding and report any sign of security threat to relevant agencies. Three other emirs yet to return to their domain include the Emir of Bama, Alhaji Kyari El-Kanemi, Emir of Dikwa, Muhammad Ibn Masta, and Chief of Gwoza Alhaji Muhammad Timta. The three are still residing in Maiduguri, the state capital.
notorious activities in the area. The governor said the transport interchange, which would cost $70 million, would be constructed on the publicprivate partnership (PPP) arrangement, noting that it would be completed between 13 and 16 months. He disclosed this at a meeting with stakeholders at the State House, Alausa, noting that the fear of insecurity “will totally be a thing of the past by the time the project is completed.” The meeting, which was called to sensitise the stakeholders, was attended by leaders of National Union of Road Transport Workers (NURTW), market associations and community leaders among others.
At the meeting, Ambode said the interest of market men and women and transporters have been taken care of, as they would more money compared to what they are currently making. He said: “I am so happy that we are working together on this project. What we are doing today is what we have been planning for long and our plan is to transform some notorious areas in the state to places like Victoria Island. “Oshodi is known for all kinds of notorious activities and we want to totally do away with that belief and the best way to go about it is to give the people world class facility and make them to live better lives.“We want the people in Oshodi to
be identified with good and not bad things all the time and that was what made us to decide that the kind of development going on in Victoria Island, Lekki and other places in the state should be replicated in Oshodi as well. “I mean I find it very disturbing that our children in Oshodi would have to travel to Lekki or Ikeja to have access to good shopping mall. So, what we have decided is to regenerate Oshodi.” Giving insight into the project, the Managing Director of Planet Projects Limited, Mr. Biodun Otunola, promised that the firm will meet up with the scheduled time. The managing director
explained that the project, which Planet Projects Limited would execute in partnership with the state government, would gulp about $70 million. He added that that several financial institutions “have expressed interest to be part of the project.” The Lagos state NURTW Chairman, Mr. Tajudeen Agbede, commended the governor for the initiative, and expressed the readiness of his members to support the government to make the project a reality. Also, Agbede thanked Ambode for the concretised Brown Street in Oshodi, but pleaded that their members should be carried along in the allocation of the shops in the shopping mall.
Ekiti: Group Disagrees with Fayose over Directive to Deal with Killer Fulani Herdsmen Sunday Okobi A pro-democracy group, Concerned Professionals Congress (CPC), yesterday disagreed with Governor Ayo Fayose of Ekiti State over his directive to the people of the state to henceforth deal with any Fulani herdsman found to have been involved in attacks on the people of the state. The group stated that such directive is a resort to anarchy, mob action and jungle justice which might portend grave dangers to democracy and national stability. The pro-democracy organisation observed that such charge to the people of the state could be hijacked and exploited by enemies of democratic stability in the country to unleash aggravated mayhem and “fulfil their narrow and selfish agenda to truncate and derail Nigeria’s fledgling democracy.” While condemning in strong terms the recent killings of two persons in the state by hoodlums suspected to be killer herdsmen, CPC expressed condolences to the families of the deceased but appealed to the people of the state to allow security agencies to properly investigate the killings to unravel the identities of the perpetrators and bring them to justice. CPC’s National Coordinator, Tukur Musa Tilde, and Chief Media Strategist, Emeka Nwapa, in a statement yesterday said Fayose directive to the people of the state “is anarchical, dangerous
and inimical to the resolution of conflicts in the country. “Such a wholesale approval of reprisal killing automatically endangers the lives of other citizens elsewhere in the country. ‘’It is very important that our elected leaders are cautious in the present circumstances. Without doubt, we are alarmed by the spates of marauding killer herders in the country. However, we should not allow emotion to rule our actions. Our leaders should rise above base instincts otherwise leadership will be meaningless. ‘’We should not herd our people into more dangers. We should emulate Governor Ifeanyi Ugwuanyi of Enugu State who, after similar horrendous attacks on Ukpabi-Nimbo community, displayed rare calmness and candour, urging his people to avoid reprisals. This is the commendable spirit of the new Nigeria.’’ CPC Media Strategist, Nwapa, argued that reprisal actions had never resolved any conflict anywhere except deepening existing fault lines, pointing out that Fayose even admitted in his address to the people that he could not guarantee the extent of the fallout of his directive. ‘’The governor may have later realised the obvious fallouts of his charge when he told them that he will approach the state House of Assembly for a bill to criminalise grazing in wrong areas. This is the lawful thing to do.
SUPPORT FOR DEVELOPMENT
L-R: Lagos State Governor, Mr. Akinwunmi Ambode, in a handshake with the Chairman, National Union of Road Transport Workers (NURTW), Lagos Council, Alhaji Tajudeen Agbede (second right), and a trustee member of NURTW, Lagos Council, Mr. Paul Oginni, during a meeting with transport union leaders, Oshodi market men and women on the construction of the Oshodi Transport Interchange at the Lagos House, Ikeja....yesterday
INEC to Consolidate on Use Electronic Voting, Says Yakubu Onyebuchi Ezigbo in Abuja Ahead of the 2019 general election, the Chairman of the Independent National Electoral Commission (INEC), Professor Mahmood Yakubu, has said the commission was planning to phase out all aspects of manual conduct of elections in the country The INEC boss stated this while receiving executives of the forum of State Independent Electoral Commission (SIIECS) who paid him a courtesy call at the commission’s headquarters in Abuja. He said the commission would in place of the manual process introduce modern technology in the conduct of
local elections through out the country. According to him, “We can no longer continue to conduct elections manually in Nigeria, we must introduce modern technology as being done in other countries, very soon the use of technology for the conduct of local elections in the country will be mandatory “It will make the process transparent and very open as it should be, the use of smart card, otherwise known as card reader machine has come to stay, though it requires a lot of resources, we see we can do it because it adds value and more credibility to the electoral process in the country, some states have been using it in the conduct of
their elections, we are seeing how we can make it to go round,” he added. On the issue of collaboration, INEC boss said, “we will continue to collaborate and cooperate with SEICs and other organisations in improving elections, management in th country Earlier, the Chairperson of the Forum, Mrs. Gloria Ukpong, who is also the Chairperson of the Akwa-Ibom State SIEC said the members came to ensure the continuation of the good working relationship that existed between the forum and the immediate past commission under Professor Atahiru Jega. She said that INEC had assisted in no small way in carrying out their assignments
in their different states. According to her, “we all have great and beautiful memory under the former commission and we want the relationship to continue. We can learn many things from the commission under you and take them to our states. “The introduction of card reader at the national level is a welcome development, only Sokoto State had implemented it and it allows for more transparency. If we use the same voters registers to conduct elections at the state levels, why can’t we come together for discussion on how we can also be using the card readers. It requires a lot of resources which the states may not be able to bear the cost,” she said.
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PDP CRISIS WORSENS AS COURTS GRANT CONFLICTING ORDERS the recognition of the caretaker committee constitutionally set up at the convention and the caretaker committee was empowered to conduct primaries, if need be, within this interim period and to submit any such candidate to INEC. And INEC was restrained from receiving any document in any manner however, dealing with the removed officers. “As it were, what the order has done was to preserve the gains, albeit temporarily, of the convention and to try and move the party forward so that the party would know how it can stabilise itself.”
Court Sacks Makarfi C’ttee
However, as the court in Port Harcourt gave its order, another court of concurrent jurisdiction in Lagos sacked the seven-man interim committee led by Senator Makarfi. Other members of the committee are a former aide to ex-President Goodluck Jonathan, Senator Ben Obi (national secretary), Senator Odion Ugbesie, Senator Abdul Ningi, Mr. Kabir Usman, Mr. Dayo Adeyeye and Alhaja Aisha Aliyu. Justice Ibrahim Buba of the Federal High Court, Lagos, held that the committee was appointed in violation of an order he made on May 12. He had barred the party from conducting elections into offices of the national chairman, national secretary and national auditor pending the hearing and determination of the suit. The judge had also restrained INEC from monitoring the election. Justice Buba directed the IG Solomon Arase to enforce the order. The plaintiffs — Sheriff, Oladipo and National Auditor, Alhaji Fatai Adeyanju – had prayed the court for an interlocutory injunction restraining PDP from conducting any election into the offices of the national chairman, national secretary and national auditor which they occupied, pending the hearing and determination of the substantive suit. Justice Buba said he would not allow his order to be violated without consequence, adding that he had an obligation to ensure his directives were obeyed. “No court can make an order in vain,” he held. Oladipo and Adeyanju’s lawyer, Ajibola Oluyede, informed Justice Buba about an application filed yesterday in which he prayed the court to invoke its disciplinary powers. He said: “Certain steps were taken to remove the plaintiffs from their office notwithstanding your Lordship’s interlocutory injunction which restrained the respondents from taking such steps. “The steps were taken over the
weekend to remove them and it was during the pendency of this action. It is for that reason that we were constrained to file this application. “We seek your Lordship’s disciplinary jurisdiction to bring back matters to the status quo based on the order of May 12.” Justice Buba said although Oluyede’s application was not ripe for hearing, he was bound to protect the court’s sanctity against violation of its orders. He said to flout a court order is to invite anarchy. He quoted Section 287(3) of the constitution, which states: “The decisions of the Federal High Court, a High Court and of all other courts established by this Constitution shall be enforced in any part of the federation by all authorities and persons, and by other courts of law with subordinate jurisdiction to that of the Federal High Court, a High Court and those other courts, respectively.” The judge added: “Therefore, the Inspector-General of Police is directed to enforce the orders of this court until the order is set aside or all the applications before the court are disposed of. “Because of the nature of this matter being political, time is hereby abridged for the hearing of all applications,” he said. The judge warned the Makarfiled committee “not to act in that capacity in defiance of this order”.
Confusion over PDP Legal Representation
Before the ruling, there was some mild drama as two lawyers, Ahmed Raji (SAN) and Godswill Morakpor, were locked in a heated argument over who, between them, was authorised to represent PDP. Both had announced their appearance for the PDP. Raji said: “There was no attempt to change counsel. I am the counsel on record for the second defendant (PDP). The new caretaker committee has revalidated my appointment. This is the letter,” he said, handing the letter to Justice Buba. But Morakpor said he was the one authorised to represent PDP, not Raji. He said: “Today is like a nightmare to me. I never envisaged a situation where I would be dragging a client with a senior member of the bar. We have filed a notice of change of counsel and served on the learned SAN.” Raji claimed he was not served with an application for change of counsel for PDP. Then the court’s bailiff was sent for and he confirmed that he indeed had served Raji with the application at his office. Ruling, Justice Buba held that Morakpor was the recognised counsel for PDP.
PDP Governors, Others Meet
Reacting to the worsening crisis, critical stakeholders in the main opposition party comprising its governors, members of the Board of Trustees (BoT) and party elders agreed to meet before the end of the week to reconcile the differences threatening to tear the PDP apart. The planned stakeholders’ meeting came just as the caretaker committee appointed to run the affairs of the PDP, yesterday started to reach out to aggrieved party leaders, particularly members of the BoT. The committee headed by Makarfi sent emissaries to the leadership of the BoT and the Concerned Stakeholders Group led by Prof. Jerry Gana seeking for a meeting on how to arrive at a common ground for the return of peace in the opposition party. A former Minister of Environment and a prominent member of the Concerned Stakeholders Group, Mr. John Odey, who spoke on the latest development about the crisis in the party, said that the only option left for leaders of the party was for them to pursue genuine dialogue as a means of resolving the face-off. He said there was every likelihood that a meeting of key organs of the party, governors, elders and the National Assembly caucus would be convened this week to chart a way forward. He said that though his group had been invited for dialogue by the Makarfi-led committee, what was required now is for a peace meeting to be brokered under the auspices of the BoT. “Party leaders will be engaging in a crucial meeting this week with the governors, members of the BoT and other elders of the party to ensure that the differences are sorted out so that we can forge ahead,” he said. Regarding the call for dialogue, Odey said the concerned elders of the party had held the view that things should be done properly and the Makarfi-led caretaker committee must subject itself to the authority of the BoT which is the only organ recognised by the party’s constitution under the present circumstances to navigate PDP out of the crisis. According to him, there was also the need to expand the composition of the caretaker committee to include other stakeholders who had worked tirelessly for the stability of the party. Meanwhile, a party source said the caretaker committee decided to suspend its earlier plan to hold a press conference to kick-start its operations due to the two conflicting court orders issued yesterday in Port Harcourt and Lagos over the sack of Sheriff. In the same vein, the premises of the national secretariat of the PDP remained under lock and key yesterday.
Buhari Appoints Babandede Comptroller General NIS Dele Ogbodo in Abuja
President Muhammadu Buhari, yesterday approved the appointment of Mr. Mohammed Babandede, as the Comptroller General of the Nigeria Immigration Service (NIS).
In a statement signed by the Permanent Secretary, Ministry of Interior, Bassey Okon Akpanyung, in Abuja, said the appointment took effect from 15th of this month. Until his appointment, the new Comptroller General was a Deputy Comptroller General (DCG) of the Nigeria
Immigration Service (NIS) headquarters. The statement revealed: “He replaces Mr. Martin Kure Abeshi, who retired from the service at the end of his tenure. The appointment of Mohammed Babandede took effect from 15th May 2016.”
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CRIME&PUNISHMENT
Sexual Harassment Bill Passes Second Reading Omololu Ogunmade in Abua A bill seeking a five-year jail term for lecturers in tertiary institutions who exploit their vantage positions to subject female students to sexual harassment yesterday passed second reading. Tagged: ‘Sexual Harassment in Tertiary Educational Institutions Prohibition Bill, 2016,’ the bill which was sponsored by Senator Ovie Omo-Agege (Delta Central) along with 45 other senators “makes it a criminal offence for any educator in a university, polytechnic or any other tertiary educational institution who violate or exploit the studentlecturer fiduciary relationship for sexual pleasures.” The bill makes it mandatory for any vice chancellor, provost and rector of a university, polytechnic and college of education to promptly act on the report of any sexual harassment by a
female student, failing which he said such authority would be jailed for two years. He said: “The bill imposes stiff penalties on offenders in its overall objective of providing tighter statutory protection for students against sexual hostility and all forms of sexual harassment in tertiary schools. “The bill provides a compulsory five-year jail term for lecturers who sexually harass students. When passed into law, vice chancellors of universities, rectors of polytechnics and other chief executives of institutions of higher learning will go to jail for two years if they fail to act within a week on complaints of sexual harassment made by students. “The bill expressly allows sexually harassed students, their parents, or guardians to seek civil remedies in damages against sexual predator lecturers
26-year-old Man Convicted for Murder, to Die by Hanging Monday Osayande in Warri Delta State High Court sitting in Asaba has sentenced one Lucky Anyali to death by hanging for murder. The 26-year-old Anyali was convicted on a one count charge of murder, punishable under Section 319(1) of the Criminal Code Cap C. 21 Volume 1, Laws of Delta State of Nigeria, 2006. Anyali, a builder, on or about February 18, 2014, in OgwashiUku, murdered one Emeka Ashibuogwu by stabbing him in the chest region with a kitchen knife. Ashibuogwu reportedly gave up the ghost at the Ogwashi Uku General Hospital where he was rushed to. He was said to have had a scuffle with his assailant when he went to see his estranged
wife who had a three-year-old daughter for him. It was said the condemned murderer was having an affair with the estranged wife of the deceased. The story had it that Lucky became furious on sighting Emeka that night who reportedly visited to see his three old daughter who was said to be ill. After committing the offence, the accused fled the scene of the crime that night but was later arrested by youths in the area the next morning and handed him over to the police at OgwashUku where he admitted in his voluntary statement to have committed the offence, according to him, in self-defence, a position he maintained during trial but which was dismissed by the court and sentenced to death by hanging for murder.
Blasphemy: Kano Govt to Appeal Judgment in Favour of Sheikh Nyass, Five Others Ibrahim Shuaibu in Kano The Kano State Government yesterday expressed shock and disgust over the ruling of the Court of Appeal, Kaduna, declaring Abdul Nyass and five others not guilty of blasphemy against Prophet Muhammad. The state government promised that it had concluded plans to appeal the judgment. Sheikh Abdul Nyass and five others were charged to court by the state government for allegedly making inciting statements interpreted as blasphemy against Prophet Muhammad. They were sentenced to death by hanging by the Upper Shari’ah Court, but the Appeal Court in Kaduna has, however, declared them not guilty. In its reaction in a statement signed by Commissioner for Information, Malam Muhammad Garba, the state government
said: “We are extremely shocked and dissatisfied with the ruling of the Court of Appeal, for declaring Nyass and five others not guilty of the offence. “The appellants were last February found guilty for blasphemy against Prophet Muhammad, and sentenced to death by the Upper Shari’ah Court, Rijiyar Lemo, presided over by Khadi Atiku Muhammad Bello. “The state Governor, Abdullahi Umar Ganduje, has already instructed the state Attorney General and Commissioner for Justice to file an appeal against the ruling of the Appeal Court immediately. “The public is therefore urged to be calm, patient and exercise restraint as the state government has vowed to continue to pursue the case with unwavering commitment until the accused persons are brought to book according to the provision of Islam.”
before or after their successful criminal prosecution by the state. The bill also seeks protection from sexual harassment for prospective
students seeking admissions into higher educational institutions, students of generally low mental capacity and physically
challenged students,” OmoAgege said. The bill was referred to the Committee on Judiciary, Human
Rights and Legal Matters. The committee was asked to conduct public hearing and report findings within four weeks.
WE WANT ORDER AND PEACE
L-R: Deputy Governor of Kaduna State, Barnabas Bala Bantex; Governor Ahmed Nasiru el-Rufai; and Speaker, state House of Assembly, Hon.Aminu Shagelinku, at the inauguration of the KASTELEA in Kaduna....yesterday Idris Egaji.
Criminologist: Corruption Dominates 80% of Crimes in Nigeria Yinka Kolawole in Osogbo A Professor of Criminology, Professor Femi Odekunle, yesterday posited that corruption-related offences had dominated more than 80 per cent of related crimes in the country. Odekunle who is a member of the Presidential Advisory Committee against Corruption stated this at the presentation of a paper tittle: ‘Corruption’ at this 51st annual general meeting of the Nigerian Institution of Surveyors in Osogbo, Osun State contended that out of 10 global corruption cases, Nigeria is always implicated in the six of them. He noted that corruption has become a permanent feature of in the daily national discourse from 2006 to 2016. The professor said corruption has remained endemic, pervasive and systemic in virtually in all public and corporate life. Odekunla emphasised that the consequences of the crime was already killing the polity, economically, politically and socioculturally, resulting in
unjustifiable underdevelopment and creating situation of poverty in the country. He added that some of the problems faced in fighting corruption was the law enforcement agencies, anti-corruption agencies and criminal justice system which he said are largely ineffective to combat the crime. The criminologist opined that Nigerians needed to fight corruption totally, noting that President Muhammadu Buhari is fantastically committed to the fight against corruption and that was why he made some reduction in the federal ministries and parastatals. Odekunle further emphasised that already, the committee is currently working with organisations, judiciary and relevant agencies to develop a workable frame work to assist in fighting the crime. He however, noted that corruption has drastically reduced the nation’s image locally and internationally, contending that to stop this, “Nigerians need to moderate the existing law to be able to combat it frantically.”
Businessman Forfeits Undeclared $41,000 The Economic and Financial Crimes Commission (EFCC) successfully secured the conviction of one Agumandu Christopher Nnamdi, before Justice F.N Yunusa of the Federal High Court Enugu, Enugu on one-count charge bordering on money laundering. The convict was arrested by a team of Presidential Trans-Border Task Force of the Nigeria Customs Service on September 5, 2015 at the Akanu Ibiam International Airport Enugu for falsely declaring the sum of $9,500 out of the total sum of $51,000 on his way to China on an alleged business trip, an offence contrary to the Foreign Exchange (Monitoring and Miscellaneous) Act, Cap F34 Laws of the Federation of Nigeria, 2012. He was subsequently handed over to the commission for prosecution. He accused of contravening section 12 of the Foreign Exchange(Monitoring and Miscellaneous) Act, Cap F34 Laws of the Federation
of Nigeria,2004 committed an offense punishable under Section 2(5) of the Money Laundering Prohibition Act,2011 as amended by Section 2 of the Money Laundering Prohibition (Amendment) Act, 2012. The prosecuting counsel, R.E Ajobiewe, told the court that the accused person has entered a plea bargain agreement in line with Section 272 of the Administration of Criminal Act and applied that the court adopt the plea bargain agreement. The lead defence counsel, A.O.K Agbawo however prayed the Court to tamper justice with mercy adding that the accused is a hardworking young man and the said money was legitimately earned. He further applied that the accused person’s passport and the said money be returned to him. The court however found the accused person guilty, dismissed the application of the defense counsel and ordered that the undeclared sum of money totaling $41,000 be forfeited to the federal government.
EFCC Quizzes Edo PDP Chairman over 2015 Campaign Funds Adibe Emenyonu inBeninCity The Edo State Chairman of the Peoples Democratic Party (PDP), Chief Dan Orbih, has been a guest of the Economic and Financial Crimes Commission (EFCC), over the N700 million 2015 presidential campaign funds that came to the state. Orbih, who was said to have spent his second day in the custody
of anti-graft agency, was allegedly whisked away on Monday to Port Harcourt where he is helping the commission in its investigation over the spending of the money Two weeks ago, the coordinator of the campaign organisation of former President Goodluck Jonathan in the state, Pastor Osagie Ize-Iyamu and Mr Tony Aziegbemi, two-time member, representing Esan North-east
and Esan North-west federal constituency in the state were, invited to Port Harcourt, in respect of the on going investigations on how the campaign funds were expended in the state. It was learnt that Ize-Iyamu was said to have received the money from Fidelity Bank on behalf of the party, while Aziegbemi and a former Deputy Governor of the state, Mr Lucky Imasuen witnessed
the handing over of the cash to Ize-Iyamu, who told journalists that the money was taken to the residence of a leader of the party where it was shared to party executives in the 18 Local government areas. Orbih it was learnt, is being quizzed over the sharing of the money by the commission as gathered had allegedly ordered them to return the funds.
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Group Sports Editor Duro Ikhazuagbe Email duro.ikhazuagbe@thisdaylive.com
S I AS I A’S R I OT ACT TO D R E A M T E A M V I
Report to Camp Today or Forget Rio2016 Duro Ikhazuagbe Dream Team VI Head Coach, Samson Siasia, has warned that any of the selected foreign-based players for the Suwon Invitational Tournament in Korea who fails
to report to camp today to forget about going to Brazil for the Olympic football event in August. Speaking after Monday evening’s training session at the FIFA Goal Project pitch, Abuja, an obviously angry Siasia expressed
Enyimba in Stiff Champions League Test Draws Zamalek, Setif, Sundowns Nigeria champions Enyimba have been handed a tough group as the draws for the 2016 CAF Champions League which held yesterday in Cairo. The seven-time Nigerian champions will be in Group B alongside Egyptian giants Zamalek, Entente Setif of Algeria and South African champions Mamelodi Sundowns. Enyimba, two-time champion of the competition, are looking to win the tournament for the first
GROUP A
Zesco (Zambia) Al Ahly (Egypt) Asec Mimosas (Ivory Coast) Wydad Casablanca (Morocco)
his displeasure with most of the players who are holidaying in the country after the break in Europe. “Most of the players invited for the Suwon Tournament have arrived Nigeria but are not willing to report to camp,” observed the coach who is aiming to improve on the silver he won at the Beijing 2008 Games in China. He said that the only way he can select players for the Olympics is when they train together as
a team, adding that no player will walk into his team without earning it. “It is annoying that these boys have not placed the same importance myself and other members of the technical crew have placed on the Olympics. I have information that aside one or two players who are involved in their team’s play-off games, the others have arrived the country but have just refused to report
to camp. “If they don’t report to camp on time, how can I work on them to know their level of adaptability to my game plan? It’s frustrating sometimes. Except for Saturday Keigo who reported to camp on Sunday, the others have not bothered to report,” revealed the former Eagles forward. Siasia also disclosed that “if any of the invited overseasbased players thinks because he has been registered for the
competition in South Korea and as such cannot be dropped,” he has a surprise for that player. The affected foreign-based players include: Amuzie Stanley, Azubuike Okechukwu, Usman Mohammed, Sodiq Popoola, Saviour Godwin, Taiwo Awoniyi and Nathan Oduwa. Meanwhile, the Dream Team will tomorrow play a friendly with a local club side as part of its build-up for the Suwon Invitational Tournament.
time in 12 years after triumphing in 2003 and 2004. Group A will see Zesco of Zambia, Al Ahly of Egypt, Asec Mimosas and Tunisian side Wydad Casablanca battle it out for honours. South African side Mamelodi Sundowns was a late addition to the draws in place of AS Vita of DR Congo who were disqualified for fielding a banned player in the preliminary rounds of the competition.
GROUP B
Enyimba (Nigeria) Zamalek (Egypt) ES Setif (Algeria) Mamelodi Sundowns (South Africa)
Onazi, Eight Eagles Off to France for Friendlies Nigeria and Lazio midfielder, Ogenyi Onazi, was at the head of eight Super Eagles players who traveled out with the assistant coaches and other backroom staff from Abuja for France last night. The Super Eagles take on Mali at the Stade Robert Diochon in Rouen on Friday, before traveling to Luxembourg City on Saturday, ahead of the game with Luxembourg at the Josy Barthel Stadium on Tuesday evening. Others are goalkeeper Ikechukwu Ezenwa, defenders Elderson Echiejile, Musa Muhammed, Abdullahi Shehu and Kingsley Madu, midfielder Etebo Oghenekaro and forwards Aminu Umar and Brown Ideye. Of the original 26 players that were listed by interim Head Coach Salisu Yusuf for the games against Mali and Luxembourg, the NFF has released captain John Mikel Obi and his assistant, Ahmed Musa for former captain Joseph Yobo’s testimonial game in Port Harcourt on Friday, while defender Chidozie Awaziem is a big doubt and forwards Aaron Samuel and Victor Moses are out, the former
as a result of injury. Defender William Troost Ekong will be on duty for his Norwegian club on Thursday and is only in consideration for the match against Luxembourg in Luxembourg City on Tuesday next week. Goalkeepers Carl Ikeme (England-based) and Daniel Akpeyi (flying in from South Africa), defenders Kenneth Omeruo, Gbenga Arokoyo and Leon Balogun, midfielders Wilfred Ndidi and Raheem Lawal, and forwards Kelechi Iheanacho, Moses Simon, Odion Ighalo and Alex Iwobi are also expected in camp in France this morning. Meanwhile, the Nigeria Football Federation (NFF) has applauded the French Embassy in Nigeria after Super Eagles’assistant coaches and backroom were granted visas yesterday. Assistant Coaches Imama Amapakabo and Kennedy Boboye, and physiotherapist Chris Anozie were among those issued visas. Team administrator Dayo Enebi Achor, doctor Ibrahim Gyaran and equipment officer Chidi Ngoka left Nigeria on Monday night.
Former IBB Golf Club Captain Loses Mother Lady Cecelia Nwaezekaibea Azogu, mother of former Captain of the IBB Golf Club, Tony Azogu, is no more. Lady Azogu passed away in Oguta, Imo State, on May 11, 2016. She was aged 87. According to a statement from the Azogu family, burial rites will begin with Vigil Mass on June 3 at the Sacred Heart Catholic Church, Oguta. “This shall be followed by a Burial Mass on June 4 while interment will hold same day at
her No 59, Agunze Road Oguta,” observed the statement. Azogu said of his late mother: “Mama was kind to all and she exhibited undying love for her children. She was a rallying point for about every woman in our community. I shall miss her so much. When the burial rites are over, I intend to arrange a special Golf Kitty for her. I want friends from the golfing world to know how much I really appreciate my mom.”
L-R: Former Super Eagles player and Coordinator of the Joseph Yobo Testimonial Game Committee, Waidi Akanni; Ex international, Joseph Yobo; Sports Minister, Solomon Dalung; and Legal Adviser to the Testimonial Committee, Uzor Konyeaso, during Yobo’s courtesy call on the minister in Abuja…yesterday
Eagles Will Miss Yobo’s Charisma, Says Dalung Sports Minister, Solomon Dalung, has pointed out the need to have players with Joseph Yobo’s leadership qualities and charisma in the senior national football team. Speaking when a delegation of JosephYobo Centenary Committee paid him a visit yesterday in his office in Abuja, Dalung tasked the former Super Eagles captain to use his wealth of experience in the game to groom players who will step into his shoes. “There is need for us to have people who will succeed us. We have to produce people who will replicate what we did.Your (Yobo) charisma and leadership in the national team was outstanding and you have to think along the line of having a system that produces players who replicate that in the national team. No doubt, the national team will miss you,”
noted the minister while recalling the positive role played by Yobo in the senior national team. Dalung has fond memories of Yobo at Mali 2002. “I was a member of the Federal Government delegation to the Nations Cup in 2002 in Mali. You were so young then. I appreciate your commitment to the national team.There was this match (against Senegal) that we lost and we would have conceded more goals if not for your doggedness in defence. In fact, at a time you rushed forward to help the attack when the attackers were not biting enough. “The good thing is that you are being celebrated while you are alive. At least, you will know that all your labour was not n vain for Nigeria,” he added. Earlier in his speech, Yobo
expressed his joy at playing for Nigeria. “It is now that I look back and ask myself ‘did I do this much?’ After 101 games, three World Cups, six AFCONs, it is now that I feel what a blessed man I am,”, the former Everton defender recalled. Meanwhile, Rivers State Governor, Nyesom Wike, will score the first goal of the Yobo Testimonial match at the Adokiye Amiesimaka Stadium in Port Harcourt on Friday, May 27. Yobo, in whose honour the game is being played, said instead of the usual ceremonial kick off, there will be a ceremonial penalty, to be taken by the governor against former Nigeria goalkeeper Vincent Enyeama “Governor Wike is a man of unique qualities, so it is only right that we give him the distinction of opening this special game in a
unique fashion,”the former Nigeria captain announced yesterday. “Although he is great goalkeeper and a great penalty saver, I don’t think that Enyeama can stop that penalty,”Yobo joked yesterday. A host of international stars and former Nigeria players will be in Port Harcourt for the match, which follows last weekend’s international golf tournament andYobo insists it is a credit to the Wike administration that the state is hosting major events without any incidents “High profile events and people are coming to Rivers State and it is a credit to the governor that all these events are happening in peaceful circumstances.” The Kick off time for the game is at 4pm with SuperSport promising to televise it on SuperSport 3HD and SuperSport 9.
Excitement Heralds Ekundayo’s ABU Title Defence Two Africans will take the centre stage in world boxing come June 4 as the African Boxing Union (ABU) is set to stage its welterweight title defence at the prestigious York Hall in London. Title holder, Nigerian born Larry Ekundayo, nicknamed“The Natural” is being challenged by Tanzanian champion, Saidi Mundi and both boxers will be making history as it is the first time an African title defence will be hosted in the York Hall which is known
as the British home of boxing. Organisers said tickets are selling fast as boxing fans in Britain and other parts of the world are expecting an exciting and thrilling display of African pugilism. The fight has been described as a“time of reckoning”for Ekundayo to prove his invincibility just as many say the battle is not only between both fighters but also between their compatriots from West Africa and East Africa from
where both boxers hail, going by the buzz which the fight is generating across the United Kingdom. Larry ‘The Natural’ Ekundayo is the undefeated African Boxing Union champion, International Masters welterweight title holder and the 2012 Prizefighter champion while the Tanzanian champion, Mundi, brings an impressive ring record of 14 wins and only two losses. Both athletes will sure be looking
to get the best of one another on the night but victory is especially non-negotiable for the phenomenal Ekundayo as it will propel him up the world rankings ahead of a potential title defence in homeland Nigeria scheduled as part of activities to mark the nation’s Independence anniversary on October 1. Ekundayo’s manager, Ben Gray, has consistently assured that the boxer is in great shape to produce an excellent performance to achieve victory and also thrill boxing fans.
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Djokovic, Nadal through, Kerber Out
Top seed Novak Djokovic and nine-time champion Rafael Nadal eased through to the French Open second round with comprehensive victories. Djokovic, a defeated finalist in three of the last four years, beat Chinese Taipei’s Yen-Hsun Lu 6-4 6-1 6-1. Nadal, the 29-year-old Spanish fourth seed, took only one hour and 20 minutes to overcome Sam Groth 6-1 6-1 6-1. Earlier, Australian Open champion Angelique Kerber was beaten by world number 58 Kiki Bertens. Nadal, who hit an astonishing winner through his legs in the third set, will face Argentine world number 99 Facundo Bagnis in the second round after taking his career French Open record to 71 wins and two losses. Djokovic will face Belgian
Djokovic...cruises into next round easily Steve Darcis next, ahead of a potential third-round encounter with British number two Aljaz Bedene in the third round. Seventh seed Tomas Berdych brushed aside Vasek Pospisil in straight sets in the opening match on court one. Third seed Kerber, who has yet to advance past the quarter-finals at Roland Garros, lost 6-2 3-6 6-3. The German, 28, lost her
opening matches at the Madrid and Rome tournaments and a shoulder injury ruled her out of Nuremberg last week. Bertens, from the Netherlands, won the title in Nuremberg. “First rounds are always tough in the tournament, especially for me. What can I say? It happens,” said Kerber, who stunned Serena Williams in Melbourne to win her maiden Grand Slam title earlier this year.
Ndidi...with the Best Goal of the Season trophy for the team. It also means a lot of hard-work for me as I continue to lift my team. I have enjoyed myself playing in the Belgian league as well as donning the colours of Genk,” he said. Ndidi made his debut for super Eagles under coach Sunday Oliseh while he has
been called for the Super Eagles holding this weekend. The former Nath Boys FC player made his Belgian League debut with Genk on January 31, 2015 against Charleroi in a 1-0 away defeat. He playe d t h e f i r s t 7 4 minutes of the game, before being substituted.
COPA Coca-Cola Football Tourney Inspires Nigerian Teens Organisers of the annual COPA Coca-Cola, Coca-Cola Nigeria, have increased the numbers of states and participants at this year’s edition which kicked off May 16. States participating in the 2016 edition rose from 10 to 32 while the number of participating schools increased from 144 to over 3000. The number of matches to be played has also increased from 120 to about 3000 with the number of players participating has also increase from 2,160 to over 60,000. Speaking on the tournament, Marketing Director, Coca-Cola Nigeria, Patricia Jemibewon, explained that, ‘It is good to know that our platform, the COPA Coca-Cola Tournament, is inspiring the next generations of football stars, both on the field and outside the field.” Copa Coca-Cola is the largest
Med-View Airline pArtners with AMAdeus for growth Amadeus-connected travel agencies can now book Med-View Airline’s complete range of travel offers as the airline moves into global distribution for the first time.
Belgian League Awards Excites Wilfred Ndidi Super Eagles star, Ndidi Wilfred is in cloud nine after his amazing goal against Club Brugge in the 2015/2016 Belgian League was voted the best goal of the season. At a colourful event organised to climax the league, the 19 -year-old scooped two awards after also finished second behind his teammate as the best young player in the Belgian league. A member of the 2013 FIFA U-17 World Cup winning team said after receiving the award on Monday that it was the best moment of his career. “I am really excited with the awards because this is the best moment of my career to have been considered among the best in the league. I won’t be carried away by this as I will continue to work hard
PRESS RELEASE
brand-supported grassroots football tournament in the world, played in over 60 countries by 1.3 million teenage players, with the aim of inspiring young people to be active and healthy through their shared passion for the sport. The COPA tournament which kicked off on May 16 will end with national finals taking place June 24 to June 30. Coca-Cola Nigeria, through the COPA Coca-Cola Nigeria football tournament, each year, offers more teens the reward of learning life skills such as teamwork, confidence, and sociability. Most Saturday mornings, on bare streets or unoccupied school fields in most areas around the country, it is not unusual to see young people pairing up to play football and when they get opportunities like the one
Coca-Cola provides through its COPA Coca-Cola platform, teens thrive. In the Coca-Cola commissioned study, Nielsen Research polled the opinions of over 11,000 male and female teenagers across 16 countries to gain a better understanding of the role football plays in the development of young people’s lives. The research showed talent to be a key trait that 97 per cent of Nigerian teenagers admire in a famous sportsperson. The research also showed that young people in the country who play football are happier than their non-playing peers, with a majority considering themselves happy, and 89 per cent more satisfied than their peers, just higher than the global average of 65 per cent.
Lagos, 16 May, 2016 nigerian based Med-View Airline will make its full range of travel offers available through the travel agency channel for the first time as the airline enters into a landmark partnership with Amadeus, a leading technology provider for the global travel industry. the partnership will give Amadeus subscribers access to the same content and conditions as users who turn to the airline’s ticketing offices, call centres and website. the long term full content agreement provides Amadeus subscribers worldwide with guaranteed access to Med-View Airline’s complete range of fares, schedules and availability. Alhaji Muneer Bankole, Md/Ceo of Medview Airlines said, “from our humble beginnings, we are expanding rapidly and our strategic priorities are to increase our international reach and establish ourselves as one of the region’s most reputable carriers. Making our full range of content available across all channels will be instrumental to partnering with the travel agency community to achieve maximum visibility with travellers, which is why our distribution agreement with Amadeus, along with its leading technology and global presence, will be a driving factor in bringing our strategy to life.” “we are very excited to welcome Med-View Airline, one of nigeria’s fastest growing carriers into our global travel community and look forward to supporting the airline’s expansion strategy. in addition to increasing Med-View Airline’s exposure to international markets and travellers, the airline will be able to open new partnerships opportunities that will enable it to brand, personalise and market its travel offers in new and engaging ways. we believe this will be a mutually beneficial partnership which will deliver relevant content to Amadeus subscribers, both in nigeria and worldwide, and Med-View Airline the framework to reap the rewards of participating in the world’s largest and most innovative travel community”, comments Yann gilbert, general Manager, nigeria & ghana, Amadeus. Med-View Airline is based in lagos, nigeria. the airline was founded in 2007 as a charter airline, mainly operating hajj flights. since 2012, Med-View Airline offers domestic and regional passenger services and in 2014 started international services. with over 430 bookable airlines and a presence that spans over 200 markets, Amadeus is the leading provider of travel distribution and retailing services in nigeria and worldwide.
Wednesday May 25, 2016
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NEITI to NNPC
“The audit revealed that Nigeria Liquefied Natural Gas (NLNG) paid the sum of $1.289 billion as dividends, interest and loan repayment for 2013. NNPC acknowledged receipt of this amount but did not remit it to either the federal government or the federation. However, it is important to also note that the 2013 figure brings to $12.9 billion the total NLNG payments received by NNPC between 2005 and 2013 but not remitted by NNPC to the federal government or the federation” –NEITI accusing the NNPC of not remitting $12.9 billion it received from the NLNG over an eight-year period to the federal government.
KAYODEKOMOLAFE THE HORIZON
kayode.komolafe@thisdaylive.com
0805 500 1974
Democracy without Parties? I
n the Second Republic if you wanted to know how “free education” was feasible you would pay attention to the statements from the secretariat of the opposition Unity Party of Nigeria (UPN) under the leadership of Chief Obafemi Awolowo. If, instead, you were interested in why “qualitative education” was more suitable for the Nigerian condition at the time you would listen more carefully to the voices from the headquarters of the National Party of Nigeria (NPN) that produced President Shehu Shagari. Officials of the two biggest political parties in the land were in contest of ideas which informed policies even outside the election season. You could readily identify an NPN partisan based on his defence of “green revolution”, the agricultural policy of the federal government, mass housing, preference of “qualitative education” over the “free education” of the UPN. The NPN even articulated a policy of “ethical revolution.” You knew a man was a UPN member by the way he defended the progressive package of the party - “free education;” “free health services;” “full employment” and “integrated rural development.” Officials and enthusiasts of the other parties - Nigeria Peoples Party (NPP), Great Nigeria Peoples Party (GNPP) and Peoples Redemption Party (PRP) also fiercely defended the policies and programmes of their respective parties. That was the nature of party politics in Nigeria more than three decades ago. However critical you could be of the politics of those days you could not deny that political parties had policies and programmes, which could be debated. Can any politician today say that this tradition of party politics has endured? This non-rhetorical question goes to members of both the All Progressives Party (APC) and the Peoples Democratic Party (PDP). Whatever the answer any politician may like to proffer for this question, it would be difficult to dispute the fact that there is a sharp decline in the quality of multi-party politics in Nigeria. It would be questionable to talk of political development when today’s parties are compared to the political parties of the old. Politicians are interested in seeking party tickets without bordering to subscribe to party’s policies and programmes; that is, of course, if the programmes exist. That is not an inspiring story to tell those aspiring to political leadership. The PDP is writhing in the pains of self-inflicted organisational wounds. The soul of the party is being contested by three tendencies. There are two committees set up last Saturday at parallel conventions in Port Harcourt and Abuja. The committee put together in Port Harcourt is led former Kaduna State governor, Senator Ahmed Makarfi. The force behind the committee is mainly the club of the PDP governors. The committee that emerged from the Abuja meeting is led by Senator Ibrahim Mantu and it is backed mainly by former ministers and some PDP elders. Meanwhile, Senator Ali Modu Sheriff who was removed as national chairman by the Port Harcourt gathering still lays claim to the leadership of the party. In all the narratives of this intra-party crisis, no one has alluded to any disagreement on policies and programmes. In other words, the crisis is not provoked by differences of views on an alternative strategy of development for Nigeria. Two distinguished elders of PDP, Chief Ojo Madueke and Chief Ebenezer Babatope, were players in the Second Republic. Madueke was a federal legislator elected on the platform of NPN while Babatope was the Director of Organisation at the UPN secretariat. They know better than this reporter that in terms of programmatic party politics PDP is a far cry from the NPN. In many respects, NPN
Tinubu was a more qualitative party than PDP. A year out of power, the PDP ought have pulled itself together to provide a formidable opposition. It is not enough for PDP members to talk of the PDP returning to power in 2019. The PDP should also be generating ideas about what it could do better than APC if it gets power back. Little surprise about what is happening to the party; the PDP has never been an organic party. It has always been a vehicle to board to power because of its national spread. Yet it is in the interest of liberal bourgeois democracy in Nigeria for PDP to be properly organised into a credible opposition. For now it is the only alternative party when talking seriously about political power. The party and those aspiring to lead it have to learn what it takes to be a respectable opposition party. For instance, who among the contenders for the leadership of PDP could even aspire to the stature of Awolowo as an opposition leader? The sort of opposition leader that Nigeria’s brand of liberal democracy needs now should be close to the portraiture of Awolowo once given by Dr. Chidi Amuta in a reported reflection on party politics. Amuta said: “When Awolowo was alive, once the Federal Government released its budget, he would release his own. Awolowo would release its own budget based on facts and figures. In fact, he had superior facts than government. Today, we are doing APC versus PDP. When the immediate past administration was there, if Jonathan were to close his mouth, APC would not have anything to say because they only waited for the man to open his mouth and say something, then APC would now counter; there’s nothing else they were doing. But Awo had his own budget, school enrolment, even facts and figures from the Central Bank. He was the one who warned that at the rate Nigeria was borrowing we would get into trouble in the next 10 years, and it happened. That’s the type of opposition we are talking about.” The APC did not demonstrate superiority of its strategy of development while in opposition. Its policies and programme were poorly articulated. Even now that it is in power the party is hardly defending the policies and programmes of the administration of President Muhammadu Buhari. Like PDP, the APC is not yet an organic party. It has not weaned itself from the circumstances of its birth. It is yet to transform itself from a rainbow coalition of politicians determined to get Jonathan voted out of power into a progressive party that articulates policies to tackle the problems of Nigeria. The APC is facing its own immense organisational challenge; this may soon prove debilitating for the party if efforts are not made to get over it. In 12 months of being in power at
the centre, the APC has not been able to muster the strength to have a proper policy conference. It has not managed its electoral success well. Make no mistake about it, there are critical areas were clear policies should be articulated. There is the foreboding of an energy crisis. While Boko Haram is being routed in the northeast, the huge humanitarian consequences of the war remain a policy challenge. The Niger Delta Question was never honestly answered by the administration of President Goodluck Jonathan on the side of justice and development. So the “open sour “ of Nigeria continues to fester. The crisis in the region is snowballing with all the economic and security implications for the nation. At the substructure is the worsening poverty in the land that should compel smarter economic management. Millions of young people are jobless. Elements of infrastructure are decaying. The social sector has been virtually abandoned by the state. In response to all these and many other problem areas of national life both the party in power and those outside power all should be harvesting ideas that could be developed into workable strategies, policies and programmes. On a cherry note, however, it is apposite to acknowledge one good example of what parties and their leaders should be doing at this time. In response to the increase in pump price of fuel, labour declared a strike last week. As part of the efforts to persuade labour leaders to end the strike, Asiwaju Bola Tinubu led other leaders of the APC to the national secretariat of the Nigeria labour Congress (NLC) for what turned out to
be a meaningful engagement. Tinubu was there to defend the policy of the Buhari administration to put an end to the corrupt subsidy regime. His views would certainly not be popular in some quarters. It might not even be palatable to his hosts. The significant thing is that a party man defended and explained the policy of government that came to power on the platform of his party. He discharged his responsibility creditably. He told NLC’s president Ayuba Wabba and his colleagues: “ I have come to beg on behalf of my party.” He even vouched for the integrity of Buhari. He urged NLC to end the strike and return to the negotiations. According to Tinubu, the policy is not inconsistent with the progressive character of the party. He sold the Buhari social agenda to placate those who might point to the social consequences of the policy. The Tinubu example is commended for other political leaders. It would be healthier if the struggles within the parties are about workability of policies or otherwise. That is what political parties should be doing in and outside power. It is always the duty of a party to defend and explain the policies of the government that comes to power in its name. There is lot wisdom in the constitutional design that makes political parties institutions of democracy. In fact, governments can only emerge on the basis of party-based elections. Democracy would be enriched when parties in and out of power realise that policy articulation is among their crucial tasks. Without policy engagement the impact of political parties in a democracy would be minimal if not nil.
STEALING COMES IN MANY SHAPES A POLITICIAN WAS QUOTED AS SAYING : “I CAME TO THIS WORLD WITH NOTHING AND I WILL LEAVE WITH NOTHING. WHY SHOULD I STEAL?” BRILLIANT STUFF!
WELL, I CLAP FOR THEM BECAUSE I THINK THEY’RE BASICALLY SAYING WHY STEAL WHEN YOU KNOW YOU CAN’T TAKE ANYTHING WITH YOU TO THE NEXT WORLD? TRUE!
FOR INSTANCE?....
I HATE IT WHEN POLITICIANS SAY THAT CRAP TO SCORE CHEAP POLITICAL POINTS AND PEOPLE CLAP FOR THEM FOR SAYING SO!
I DON’T BUY IT! …BECAUSE THEY CAN SPEND IT WHILE THEY ARE IN THIS WORLD ON THINGS YOU AND I CAN’T AFFORD!
...THEY CAN AFFORD FOREX TO MAINTAIN THEIR CHILDREN STUDYING ABROAD, WHILE YOU AND I CAN’T HAVE ACCESS TO FOREX FOR THE SAME PURPOSE!
25-05-16
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